Second Chance to Preserve Business Loss Carryforwards

On Oct. 1, 2011 State Comptroller Susan Combs sent a letter to the reporting entities of all combined groups that claimed a temporary credit for business loss carry-forwards on a 2008, 2009 or 2010 franchise tax report. The letter required the reporting entities to provide the name of the entity or individual that owned, directly or indirectly, more than 50 percent of all of the entities included on the combined report. The reporting entity had to also include the Texas business loss carry-forward as of Jan. 1, 2008, for each affiliate that filed a preservation form in 2008 or that was the basis of a temporary credit for business loss carry-forward claimed on the franchise tax report.  The due date for the information was Oct. 31, 2011.

TSCPA has been informed by the Comptroller’s office that the submission will be accepted even if it is received subsequent to Oct. 31.  Any combined group that did not respond to the initial letter by Oct. 31 can expect to receive a follow-up letter with another opportunity to respond.

While the final deadline for compliance was not stated, Comptroller staff indicated they wanted to give every subjected entity an appropriate opportunity to respond before terminating the entity’s temporary credit. This explanation has now been posted to the State Comptroller's website under Frequently Asked Questions.

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