Define Fillable Fields In Legal Texas Financial Statements Forms For Free

171.001. TAX IMPOSED. (a) A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state. (b) The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.

A nonprofit corporation organized solely to promote the public interest of a city, county, town or other area within Texas is exempt from franchise tax. The corporation must show that promotion of the public interest is its exclusive purpose and not merely an incidental result.

Under the Texas Tax Code, Section 171.301?. 3015, the State Comptroller may cause the involuntary forfeiture of an entity for failure to pay its franchise tax. Under Section 171.309, the Texas Secretary of State may also forfeit an entity's charter, certificate, or registration for the same purpose.

The Texas tax power of attorney (Form 01-137) designates an agent to represent a taxpayer before the Texas Comptroller of Public Accounts. In most cases, it is accountants or attorneys that are appointed, although any individual can be named as the taxpayer's agent.

To qualify as a passive entity, the entity must be a partnership or trust, other than a business trust, for the entire accounting period on which the tax is based. The entity may not qualify as passive for the accounting period during which the conversion occurs even if it meets the 90 percent income test.

Form 05-163 ?No Tax Due Report? generates automatically if the following occurs: Taxpayer is a passive entity. Taxpayer is a newly established Texas Veteran Owned Business (must be pre-qualified). Taxpayer is a Real Estate Investment Trust that meets the qualifications.