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Update: Comptroller Deadline Almost Here
Physicians and other businesses have more time to file their state franchise tax returns or seek a filing extension without having to pay a penalty.
Texas Comptroller Susan Combs says businesses that cannot meet the May 15, 2008, deadline to pay this new business tax now have an additional 30 days to file their returns or request an extension. Previously, businesses that did not file by May 15 would have paid a 5-percent penalty.
A comptroller's office news release said officials recognize that "the complexity of the revised franchise tax and the newness of the enhanced electronic reporting methods have caused concern among tax practitioners and taxpayers statewide."
Information about the revised franchise tax is available by clicking on the link above or by calling (800) 252-1381.
Earlier this year, TMA helped reduce Texas physicians' potential liability under the business tax by convincing the comptroller's office to adopt revised rules.
The revisions allow physicians to deduct copayments and deductibles paid by Medicare, Medicaid, and other patients from taxable revenues. They also allow physicians to deduct expenses, such as employee compensation and benefits or cost of goods sold, that are associated with Medicare, Medicaid, and other excluded revenue.
Under the original rules published Dec. 28, physicians were allowed to exclude payments from Medicare, Medicaid, TRICARE, the Children's Health Insurance Program, and workers' compensation plans from their taxable revenue but would have had to pay tax on deductibles and copayments received from patients covered under those plans.
TMA argued that disallowing exclusion of deductibles and copayments from taxable revenue violated legislative intent. State Rep. John Otto (R-Dayton) also wrote a letter to Comptroller Combs stating that disallowing exclusion of compensation costs and cost of goods sold from taxable revenue was contrary to legislative intent.
TMA still is discussing uncompensated care issues with the comptroller and hopes for a resolution soon.
Read the article "Comptroller Revises Franchise Tax Rules" from the March 15, 2008, edition of Action for more information on the franchise tax revisions.
Action, May 6, 2008
Last Published: 6/5/2008 Print this page
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