Tax Help with Texas State Taxes, Comptroller's Office

The Texas Comptroller’s office was originally created by the Texas provisional government in 1835. The Comptroller is the chief steward of the state’s finances, acting as tax collector, chief accountant, chief revenue estimator and chief treasurer for all of state government.

Below you will find information unique to the the State of Texas Comptroller's Office.

• Filling and Paying Past Due Taxes
• Penalties and Interest for Past Due Taxes
• Underpayment of Taxes
• OSI Collection Services, Inc.
• Refusal to File
• Notice of Hearing to Cancel or Suspend Sales Permit
• Tax Lien
• Wage Garnishment or Asset Seizure
• Payment Plan for Past Due Liabilities
• Power of Attorney

Filling and Paying Past Due Taxes

If you fail to file a required (sales) tax report, the Comptroller's Office will send you an estimated billing, with instructions to file a report providing your actual sales data for the estimated period. Please be aware, that failure to file or pay a tax report may result in collection actions, including, but not limited to, additional late filing penalties, liens, and criminal charges.

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Penalties and Interest for Past Due Taxes in Texas

Statutory penalty on past due taxes are calculated as follows:

• If you are paying the tax 1-30 days late, add a 5% penalty.
• If you are paying the tax 31-60 days late, add a 10% penalty.
• If you are paying the tax after the date referenced on the Notice of Tax/FEE Due, add an additional 10% penalty (for a total of 20%).
• Statutory interest begins accruing on the 61st day after the due date of a required report. The interest rate is a variable rate determined at the beginning of each calendar year.

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Underpayment of Taxes in Texas

If you have past due balances, the Comptroller's Office will send you a billing notice requesting that you pay the remaining balance. This balance is due upon receipt of the notice. You will receive a separate billing notice for each report period that is delinquent.

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OSI Collection Services, Inc.

OSI Collection Service is a private collection service engaged by the Comptroller's Office to collect past due tax accounts. If you get a billing notice from OSI Collection Service, you should remit the balance due in the envelope provided. All payments will be directed to the Comptroller's Office and credited to your account.

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Refusal to File Taxes in Texas

Typically, the Comptroller's Office will take the following collection actions to protect the state's interests and collect past due taxes:

• Require the taxpayer to post a security bond (up to $100,000 for a delinquent sales tax account).
• File a tax lien in applicable counties.
• Freeze and/or seize non-exempt assets.
• Suspend permits.
• File criminal charges.
• Place a "hold" on any outstanding state warrants payable to the taxpayer.

Notice of Hearing to Cancel or Suspend Sales Permit in Texas

If you fail to file a report, pay taxes, or post a security bond, the Comptroller's Office may suspend any permit or license issued by this agency after conducting a hearing. You can avoid this hearing simply by filing and paying the past due period(s) and/or posting the required security bond.

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Tax Liens in Texas

State law requires that all past due taxes, fines, interest, and penalties owed to the state must be secured by a lien. Please be aware that a tax lien could have a negative impact on your credit rating.

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Asset Seizure in Texas

In an effort to protect the state's interest, it is sometimes necessary for the Comptroller's Office to seize and sell a taxpayer's non-exempt assets.

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Payment Plan for Past Due Liabilities in Texas

While taxes are always due on the due date, the Comptroller's office will consider payment plans on a case-by-case basis to avoid placing undue hardships on taxpayers. Even if you enter into a payment plan, that your account is still considered delinquent and some collection actions will continue. For example, you will still receive billing notices, a lien will still be filed, and state warrants will still be placed on "hold".

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Power of Attorney with Texas

You may have a qualified professional represent you. This requires that you have a power of attorney form completed and signed before any tax matter can be discussed with your representative. The state of texas accepts the IRS form 2848, Power of Attorney for this purpose.

If you have unanswered questions, do not hesitate to contact Larson Financial.