UPDATE: The deadline is April 15, 2020. Businesses may request a six-month extension by filing Form 7004 and submitting a deposit for taxes owed. Work with your tax filer to determine your best options.
I know that you are wondering if you have the right blog. You do! Nothing has changed. We do not help people with federal income tax or franchise tax matters. Both filings do impact sales and use tax matters. Here's how:
- Reported sales figures. The sales figures reported on the federal income tax return attributed to Texas (or any other state) must match the total sales figures reported via the sales tax return and franchise tax return for each state in which you do business.
- Maintenance of the company's franchise tax account. The account must be active in each state the company does business to (1) maintain the right to do business in the state, (2) effectively maintain the separation between corporate and individual liability, (3) enjoy the right to bring lawsuits-if necessary, etc.
There are many reasons that the filing of the federal income (and usually the franchise/ state corporate income tax return) are important. Make sure it gets done or an extension request is filed timely. In addition to making sure the filings are timely, keep a complete copy of all returns and schedules. State sales and use tax auditors ask to review federal income tax returns.😱