If an entity is a member of a combined group, will it be required to file a final franchise tax report?
No. If an entity ceases doing business in Texas and is a member of a combined group, the data that would have been reported on the final report will be included in the combined group’s report for the corresponding accounting period. The entity should send its final return notification letter back to tell the comptroller the name of the reporting entity. However, if the entity (before or after it was a member of a combined group) that ceases doing business has an accounting year begin or end date that is outside the accounting period that will be used by the combined group, then it will be required to file a separate final report for the data that is outside the accounting period that will be used by the combined group.
Related Questions
- If an entity liquidates their business prior to the end of their tax year do they have to file a franchise tax return, and could they be liable for franchise tax?
- The taxpayer is a disregarded entity for federal purposes. Do they have to file franchise tax if they have nexus in Texas?
- If an entity is a member of a combined group, will it be required to file a separate initial franchise tax report?
