The Texas Comptroller of Public Accounts has recently provided guidance regarding a change to the ability to change the elected method of computing taxable margin on an amended return. This change could provide taxpayers an opportunity to file for refunds claims on returns for years in which the statute of limitations is still open.
Change of State Tax Regulation
Prior to this change in policy, regulations promulgated by the Comptroller’s Office provided, in part, “… after the due date of the report, a taxable entity may not amend its report to change its election to cost of goods sold or compensation. However, a taxable entity may amend its report to change its method of computing margin from cost of goods sold or compensation to 70% of total revenue (the default method) or, if eligible, the E-Z Computation”. The Comptroller has advised that the rule will be changed and with retroactive effect. For more information on this change, please review the information on the Comptroller’s website at http://www.window.state.tx.us/taxinfo/franchise/cog_compensation.html.
Statute of Limitations
The statute of limitations for amending returns is four years from the due date of the return, the extended due date or the date the return is filed, whichever is the later. For 2008 franchise tax reports originally due on May 15, 2008, the comptroller provided a grace period to June 16, 2008. If you filed your 2008 return within this original due date (June 16, 2008), there is still time to amend your 2008 report before the statute closes on June 16, 2012. If you filed an extension for the 2008 franchise tax year, your deadline to amend the return is the extended due date of November 15, 2008.
AG TAX LLP Can Help
If you have any other tax-related queries, and/or need assistance with tax planning/filing please contact AG Tax. Our tax professionals are highly-experienced with U.S. and Canadian tax laws and can provide you the right guidance to handle your tax situation.
Aylett Grant Tax LLP is a full service accounting firm with a dedicated team of experts, who are highly-qualified and experienced in handling situations related to U.S., Canada and other international tax laws.
We can assist with:
- Canadian Personal and corporate tax returns
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- Personal and Corporate Taxation
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