Texas Sales Tax Insolvency Settlement Attorney – for contested sales tax cases
The comptroller may settle a claim for a tax, penalty, or interest; only if the taxpayer proved by a 51% chance that:
(1) Collection of the total amount due would make the taxpayer insolvent and the taxpayer has submitted all financial records including income tax reports and an inventory of all property owned, wherever located; or
(2) The taxpayer has no property that may be seized by the courts of this or another state or the value of the taxpayer’s property is less than the total amount due and the amount of debts against the property; and the taxpayer:
(a) Is insolvent;
(b) Is in liquidation; or
(c) He ceased to do business
An insolvency settlement proposal must be submitted in a redetermination proceeding after a hearing number has been assigned and before a notice of hearing has been issued
(3) All federal income tax returns
(4) Financial statements
(5) Bank statements for the six months
If the comptroller does not accept a taxpayers’ insolvency settlement proposal, the taxpayer may request that the comptroller refer the matter to SOAH. The comptroller will refer to SOAH only factual disputes regarding whether the taxpayer met the insolvency requirements
Facing a sales tax audit in Texas? Contact our attorney for a consultation.
