Texas Franchise Tax Update

Texas Franchise Tax Filers Need To Watch For Emailed Reminders

The Texas Comptroller is changing the way annual reminders to file the Texas Franchise Tax will be delivered for 2021. For years, they have mailed an annual reminder to each Texas Franchise Tax filer with information about the current year’s due dates and this reminder includes the webfile number the taxpayer will use to e-file their tax return.

Starting in 2021, these annual reminders will be emailed to the taxpayer rather than sent through the regular mail.

This change should benefit the state by reducing postage and handling costs associated with mailing out so many notices each year. Remember that small businesses that don’t owe any tax still receive these notices because they are required to file a tax return.

This change could also be a benefit to the taxpayer by making it easier to send the reminder to their tax professional. Now, all the taxpayer will need to do is forward the email to their tax preparer, rather than scanning it or mailing it to their tax return preparer. Why would you want to send it to your tax professional? Well, because there is a Webfile number on the annual reminder. We only need this number the first time the return is efiled, but it is nice to make sure that we’ve got the correct information for the taxpayer’s Franchise Tax account.

In order to receive the notice, the Comptroller’s office will need an email address for the business. Which address the Comptroller uses could make a difference in whether the notice is actually received by the correct person at the business. Therefore, the state is encouraging Franchise Tax filers to make sure your information is accurate.

  • Visit the Comptroller’s Webfile eSystems Login webpage
  • Sign in and select “WebFile/Pay Franchise Tax.”
  • Select the taxpayer number from the list.
  • Access “Change Franchise Tax Mailing Address” to review and update (if needed) both your email address and physical address.