If an entity is a member of a combined group, will it be required to file a separate initial franchise tax report?
No. If an entity is part of a combined group report, it will not report its data on a separate initial report but will include its data with the combined group’s report for the corresponding accounting period. The entity should send its initial 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) 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 initial 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 final franchise tax report?
