We reported earlier about the Comptroller’s Oct. 1, 2011 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.
Some 8,655 taxpayers did not respond to the Oct. 1 letter so the Comptroller has sent a second request to those taxpayers with a Dec. 19 deadline for responding. Taxpayers that do not respond face the possibility of losing any future credit for their business loss carry-forwards. For more information check out Important Information to Ensure Franchise Taxpayers Keep Their Temporary Credit.