Texas Redetermination Hearing

What is the Next Step After Receiving an Audit Notice from the State?

The answer is a Texas Sales Tax Redetermination Hearing. A redetermination hearing provides a business owner the opportunity to contest the liability associated with their sales and/or use tax account with the State of Texas.

It is important to note that this window will not remain open indefinitely. Once the State has heard the business owner’s case, they will issue a determination.

It is also important to understand that there is a timeline to file an objection with the State or allow the issue to resolve in accordance with the State’s position.

Key Timelines for Redetermination

• The Texas Comptroller’s determination generally becomes final 30 days after the date the determination was served either by personal service or by mail, unless a petition for redetermination is filed before the determination becomes final.

  See Tex. Tax. Code §§ 111.009, 151.505.

• An order or decision of the Texas Comptroller on a petition for redetermination becomes final 20 days after service on the petitioner of the notice of the order or decision.

  See Tex. Tax. Code § 111.009.

• Except for jeopardy determinations (discussed below), the amount of a determination becomes due and payable 10 days after it becomes final if no petition for redetermination is filed.

  See Tex. Tax. Code § 111.0081(a).

• If a petition for redetermination is filed, the amount becomes due and payable 20 days after the Texas Comptroller’s decision in the redetermination hearing becomes final.

  See Tex. Tax. Code § 111.0081(c).

Summary of Deadlines

Without a Petition for Redetermination

1. 30 days: Comptroller’s determination becomes final.

2. 10 days after finality: Amount due and payable.

With a Petition for Redetermination

1. 20 days: Comptroller’s order on the petition becomes final.

2. 20 days after finality: Amount due and payable.