Comptroller Susan Combs announced she has reconsidered her position on changing the cost of goods sold or compensation deduction election on an amended franchise tax return. The Comptroller has revised the previously stated policy that prohibited changing the deduction election on an amended return.
“The Comptroller has revised this policy to allow taxpayers to amend reports to change their election, or to make an election, to use the COGS or the compensation deduction. Taxpayers that elected to use the E-Z computation report or filed the no tax due information report may also amend to the long form and make an election to use the COGS or the compensation deduction. Taxpayers may file amended reports for any periods within the statute of limitations.”
This is especially good news for those taxpayers who filed a return electing to deduct cost of goods sold only to later have the Comptroller rule the taxpayer is not eligible for the deduction. Find out more on the Comptroller’s website.