This post is the second of two focused on the Texas sales and use tax treatment of tax-exempt entities. The first, which can be found here, discussed the general categories and criteria applicable tax-exempt entities for...more
I’ve previously posted about various Texas sales and use tax rules – general rules, exceptions, and exemptions applied to both taxable services and tangible personal property. However for certain entities—specifically,...more
The fun continues with the 89th Regular Session of the Texas Legislature, with several new proposed House Bills that relate to the imposition of Texas taxes. Of the over 100 proposals put forth so far, we’re keeping a closer...more
3/17/2025
/ Local Taxes ,
New Legislation ,
Proposed Legislation ,
Sales & Use Tax ,
Sales Tax ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Exemptions ,
Tax Reform
In the first week of March 2025, two separate Texas tax cases were filed in Texas state district court. Each of these involves, among other claims, whether taxable security services should be rendered exempt when preempted...more
Following his January 20th inauguration, President Donald Trump has made a concerted effort to downsize the executive branch of the federal government. Today, in a move that many have anticipated for weeks, President Trump’s...more
On January 14, 2025, the 89th Regular Session of the Texas Legislature began. In just under one month, various Texas representatives have made a number of proposals to amend the Texas Tax Code that could have a significant...more
I recently posted a blog about Texas sales tax nexus in which I laid out the basic rules for determining whether a taxpayer has nexus with the State of Texas (and thus has a permit, collection, and/or reporting requirement...more
I discussed Texas franchise tax nexus in a prior post, which can be found here. However, there is a different (albeit similar) set of rules for Texas sales and use tax nexus. As with Texas franchise tax nexus, a business...more
Receiving an assessment from the Texas Comptroller can be overwhelming, and not just from a financial perspective. To a taxpayer with little to no experience in dealing with the Comptroller’s office, even knowing how to...more
One of the most important elements in determining your rights as a Texas taxpayer is the applicable statute of limitations. At the most basic level, the statute of limitations represents a time period during which the Texas...more
In my most recent blog post, I finished going through the process for computing a taxable entity’s Texas Franchise Tax responsibility. That post can be found here. However, at the end of that post, I noted that there were...more
I’ve posted two blogs that cover the first two steps in computing the Texas Franchise Tax – the computation of “taxable margin” and the computation of the appropriate “apportionment factor.” Those posts can be found here and...more
Step 1 – Taxable Margin Once you’ve determined that your business is subject to the Texas Franchise Tax, the next step will be to compute the amount of that tax. Easy, right?...more
As noted in a prior post, the Texas franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or organized in Texas. This begs the question – “Which entities are taxable, and...more
If you own a business in Texas, you’ve likely encountered (for better or worse) the Texas franchise tax. The franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or...more
Among the multitude of “taxable services” listed in the Texas Tax Code are “information services.” Although the Texas Tax Code’s definition of information services is somewhat sparse, the Comptroller has expanded on this...more
We’ve previously discussed the general rule that Texas sales and use tax are imposed on sales of “tangible personal property” or “taxable services,” [1] and that the Texas Tax Code and Comptroller’s Rules set out exemptions...more
It is not uncommon for Texas taxpayers to engage in a transaction in which they do not collect or pay Texas sales tax, believing the transaction to be nontaxable, only to later find out they had a tax responsibility. Other...more
The IRS appears to be on the verge of changing the way digital asset (i.e., cryptocurrency) transactions are reported for federal tax purposes. On April 19, 2024, the IRS issued its first draft of Form 1099-DA, the intended...more
The Texas Tax Code provides that, as a general matter, Texas sales and use tax are imposed on sales of “tangible personal property” or “taxable services.” However, various exemptions apply to these items to provide relief to...more
I previously posted about the process for requesting the subordination of an IRS lien – that post can be found here. However, as noted in that post, subordination is primarily useful in cases where a taxpayer intends to keep...more
Many businesses in Texas involve the performance of services that require the use of machinery and equipment. While these businesses may purchase the necessary equipment outright, others opt to rent equipment from...more
This post is a follow-up to my previous post in which I discussed some of the basics concerning Individual Retirement Accounts (“IRAs”). It can be found here if you haven’t read that post yet. In this “Part 2” post, I’ll...more
Subordination of IRS Liens -
Outstanding IRS liabilities can create many issues for taxpayers. To pay all or part of a liability, taxpayers may be required to seek a loan using personal or real property as security. ...more
Individuals have access to a wide variety of vehicles for investing hard-earned (or not-so-hard earned) money. Some of these, including “individual retirement accounts” (or “IRAs”), provide potential benefits from a federal...more