Franchise Tax Deadline Extended
February 26, 2021
Further tax relief for Texas taxpayers who weathered last week’s storm! The 2021 franchise tax report deadline is extended from May 15 to June 15. This action aligns with the Internal Revenue Service (IRS) announcement earlier this week extending the Federal April 15 tax-filing and payment deadline to June 15 for all Texas residents and businesses (see BKMSH Texas IRS Deadline Relief).
The due date extension applies to all franchise taxpayers. It is automatic, and taxpayers do not need to file any additional forms.
“To assist businesses coping with the unprecedented winter storm and resulting power outages and water shortages, we thought it appropriate to align the state’s franchise tax deadline with the IRS deadline, just as we did last year when the IRS moved its filing deadline back because of the pandemic,” Texas Comptroller Glenn Hegar said. “Texas businesses and business owners should be focused on recovery efforts and the health and well-being of their families, employees, and communities, and I am hopeful this action gives them that added flexibility.”
The information aggregated from taxpayers’ federal tax returns comprises the building blocks for their Texas franchise tax returns. The Texas franchise tax is imposed on each taxable entity formed or organized in Texas or doing business in Texas.
Any payments made after Aug. 16 will be subject to penalty and interest.
BKM Sowan Horan is committed to our clients’ success and will keep you apprised of any further developments with additional alerts. If you have questions or require further guidance, please contact your BKMSH team member.