Physician practices subject to the franchise tax should be aware that if the Texas Comptroller of Public Accounts hasn't received their franchise tax returns or approved their extension requests, they may receive a "Texas Notice of Intent to Forfeit Right to Transact Business."
Practices legally formed as limited liability partnerships (LLPs), limited liability companies (LLCs), professional associations, or other corporate forms are subject to the franchise tax. The Texas Comptroller of Public Accounts mailed the notices Aug. 8 to those taxable entities that failed to file the 2014 franchise tax report by May 15.
By law, the right to transact business can't be forfeited before 45 days from the date the comptroller mails the notice. A company's status will remain active on the comptroller's Taxable Entity Search during this period, but the practice should act immediately to address the problem.
Practices that filed for and received an extension have until Nov.15 to file the 2014 franchise tax report.
Action, Aug. 15, 2014