HARLINGEN — Federal tax day has come and thankfully gone, but Texas business owners who owe or underreported state taxes last year have an opportunity to correct their accounts without paying interest or penalties.
The Texas Tax Amnesty Program offered by the State Comptroller’s Office has begun and extends until June 29.
“If you’re a shop owner and you realize there are some taxes you haven’t paid prior to Jan. 1, there’s a way you can come in and you can make everything whole by paying those taxes up front and you don’t get charged penalties and interest,” Kevin Lyons, spokesperson for State Comptroller Glenn Hegar, said.
“We’ve had a ton of submissions from folks who have questions about it,” he added.
The program applies to periods prior to Jan. 1, and only includes liabilities that have not been previously reported to the Comptroller’s office.
Passed by the Texas Legislature in 2017, Senate Bill 1 requires the Comptroller of Public Accounts to establish a tax amnesty program to encourage voluntary reporting by delinquent taxpayers who do not have a Texas Sales and Use Tax Permit, who are not registered for a tax or fee administered by the Comptroller’s office or underreported their sales tax.
“Maybe you didn’t have a sales tax permit, or maybe you had a permit and you underreported, or you had additional taxes and fees,” Lyons added. “This is a way you can sort of come forward and say, ‘Hey, this is what I owe and I’m going to square it and make it clean.’”
The amnesty doesn’t apply to time periods currently under audit review, to International Fuel Tax Agreement taxes, to Public Utility Commission gross receipts assessments, to local Motor Vehicle Tax or to Unclaimed Property payments.
“If the Comptroller’s office is already auditing them, that doesn’t count for tax amnesty,” Lyons added, “and what’s important to know is that, if you’ve already been in contact with our office and we’ve already declared you owe some taxes, it doesn’t apply to that.”
Tax amnesty Q&A
What are the benefits of participating in the Texas amnesty program?
Program participants can “wipe the slate clean” by filing past due reports, or amending reports that underreported taxes, without paying penalties or interest. You can also register for taxes that should have been reported, and catch up on those reports that should have been filed, without paying penalties or interest.
Will filing under the amnesty program increase my chances of an audit later?
No, but the Texas Comptroller’s Office reserves the right to audit the information you provide.
What if I fail to take advantage of the taxpayer amnesty?
If you fail to pay the taxes or fees you owe during the amnesty period, you will be responsible for all taxes, fees, penalties and interest owed.
What tax types are eligible for the taxpayer amnesty?
All state and local taxes and fees the Comptroller’s office administers are eligible, with the exception of Public Utility Commission gross receipts assessments. The Comptroller does not administer sports and community venue tax or property taxes, so these are not eligible. The Unclaimed Property program and International Fuel Tax Agreement taxes are not a part of tax amnesty.
To determine how much tax you owe, call 800-252-1390 or visit the nearest Comptroller field office. More information on tax amnesty can be found on the Comptroller’s website at https://comptroller.texas.gov/tax-amnesty/
