Texas – New Tax Amnesty Program Begins

The Short Story

The Texas tax governing authority has recently opened the door to allow businesses non-compliant with Texas tax obligations an opportunity to right their ship, and to do so in an extremely favorable manner, without interest or penalties. This amnesty program only applies for periods prior to April 1, 2012, and is further only open from June 12 through August 17, 2012. So time is of the essence.

Background

While the great state of Texas enjoys a reputation as being a "no income tax state" or at least a low-tax state in which to do business, that does not mean it is a no tax jurisdiction. A plethora of taxes apply to businesses in Texas, such as sales and use taxes, franchise taxes, and ad valorem personal and real property taxes. (The franchise tax, which applies to most type of business entities, certainly smacks of an income tax but that is for another article.) Nonetheless, Texas garners nationwide and worldwide attraction as a favorable place