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Texas sales tax notices

Got a letter from the Texas Comptroller of Public Accounts? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Texas Comptroller of Public Accounts (opens in a new tab)

Disagree with a notice?

Request a redetermination hearing by sending a letter with a Statement of Grounds listing each disputed item and the facts and legal basis for your position. You do not have to pay first, but interest keeps accruing. After the final date, you can instead pay and request a refund hearing within 6 months.

Deadline: The request must be received on or before the final date shown on the Texas Notification of Audit Results; a deficiency determination becomes final 60 days after the statement date (20 days for a jeopardy determination).

Source: Texas Comptroller of Public Accounts (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Estimated billing (failure to file)

If you do not file a required report, the Comptroller sends an estimated billing and asks you to file a report with your actual sales for the period.

Why you got it

  • A required sales tax report was not filed

What to do

  1. File the missing report with your actual sales data
  2. Pay the tax due, or contact your local field office or 800-252-8880 if you cannot pay; a waiver is not granted until all reports are filed and all tax is paid
  3. Then request a waiver of penalty and interest online or with Form 89-224; you do not have to pay the penalty while it is reviewed, but collection continues if it is denied

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Penalties for Past Due Taxes (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Billing notice (Notice of Tax/Fee Due)

A bill for a past-due balance on a report period. The balance is due on receipt, and a separate notice is sent for each delinquent period.

Why you got it

  • Tax was underpaid or paid late
  • A balance remains after a report was filed

What to do

  1. Check the period and balance against your records; the notice explains how to request a hearing if you disagree
  2. Pay the tax promptly, since an additional 10% penalty applies after the date on the notice, or contact your local field office about a payment plan
  3. Once all reports are filed and tax paid, consider requesting a penalty waiver online or with Form 89-224; a waiver in the past two years generally rules you out unless there are extenuating circumstances

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Due upon receipt of the notice.

Source: Penalties for Past Due Taxes (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Texas Notification of Audit Results

The official determination of your audit results for each tax audited. It becomes final 60 days after the statement date, and payment is due 10 days after that.

Why you got it

  • A field audit was completed
  • An examination was completed (sent as a Texas Notification of Exam Results)

What to do

  1. Review the results; for audits the Comptroller presumes a waiver request for penalty and interest, and the audit letter states its decision
  2. If you disagree with the results or the waiver decision, send a redetermination request with a Statement of Grounds by the final date
  3. If you agree, pay the total plus interest accrued since the statement date within 10 days after the final date to avoid an extra 10% penalty

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Becomes final 60 days after the statement date; a hearing request must be received on or before the final date.

Source: Contesting Disagreed Audits, Examinations and Refund Denials (Publication 96-1253) (opens in a new tab)

Assessment

Jeopardy determination

An audit or examination billed as a jeopardy determination when the Comptroller finds the state's interest is at risk. Payment is due immediately.

Why you got it

  • The Comptroller determines the state's interest is in jeopardy

What to do

  1. Treat it as urgent: payment is due immediately and the determination becomes final 20 days after it is issued
  2. If you disagree, file a redetermination request with a Statement of Grounds before it becomes final
  3. Pay what you agree you owe as soon as possible to limit further penalty and interest

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Becomes final 20 days after the determination is issued.

Source: Contesting Disagreed Audits, Examinations and Refund Denials (Publication 96-1253) (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

AuditForm 00-750

Notice of Audit (with Audit Questionnaire)

The auditor tells you by mail that your business was selected for audit and asks you to complete an Audit Questionnaire. An entrance conference is scheduled after it is returned.

Why you got it

  • Selection by industry, reporting history, prior audit results, or information sharing

What to do

  1. Complete and return Form 00-750 by the date requested
  2. Gather sales and purchase invoices, resale and exemption certificates, ledgers, and bank statements
  3. Keep in contact with the auditor; liability may be incurred if there is no contact

Source: The Auditing Process (opens in a new tab)

Registration

Changes to your permit or account: required registration, filing-frequency changes, revocation, or closure.

Registration

Notice of Hearing to Cancel/Suspend my permit

The Comptroller may suspend your permits or licenses after a hearing if you do not file reports, pay taxes, or post a required security bond.

Why you got it

  • Unfiled reports
  • Unpaid taxes
  • Failure to post a required security bond

What to do

  1. File and pay the past-due periods and/or post the bond to avoid the hearing
  2. Once all reports are filed and the tax is paid, you can ask the Comptroller to waive penalties online or with Form 89-224
  3. If you cannot pay or post the bond, contact your local field office to schedule the hearing
  4. Attend the hearing; failing to appear may lead to suspension

Source: Penalties for Past Due Taxes (opens in a new tab)

Ask for penalty relief

Penalties on a Texas notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty waiver (Request for Waiver of Penalty)

Form 89-224, Request for Waiver of Penalty for Late Report and/or Payment (or the online waiver form)
  1. File all reports and pay all tax due first; the Comptroller will not grant a waiver otherwise
  2. Submit the online waiver form or Form 89-224, explaining why you were late and what you have done to file and pay on time in future
  3. You do not have to pay the penalty while the request is reviewed, but collection continues if it is denied (a paid penalty is refunded if the waiver is granted)
  4. For audits, no request is needed: the Comptroller presumes a waiver request and states its decision in the audit letter

What qualifies: Factors under Rule 3.5, including being current on all filings and payments and no waiver in the past two years unless there are extenuating circumstances

Interest: The online form can be used to request a waiver of penalties and/or interest assessed for filing or paying late.

Source: Penalty Waivers (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Texas sales tax guide.

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