Filing Deadlines Matter
After completing a Texas sales tax audit, you have 60 days to request a hearing. Missing this deadline means your case will be transferred to the collections field office, where your best option may only be a two-year installment agreement.
The Benefits of Filing Within the 60-Day Window
By filing for a hearing within the 60-day window, the Comptroller’s office will assign you a hearing number. This number is essential to proceed with the appeals process.
After the administrative hearing, you may also apply for insolvency. Even if the Comptroller denies your insolvency request, they will often offer a five-year installment agreement instead.
Why the Five-Year Plan is Beneficial
This five-year plan is highly beneficial—it typically waives both penalties and interest.
For instance:
- In an audit covering 2017–2020, the auditor would normally assess interest from 2017 through the present.
- However, under the five-year agreement, you only pay the tax owed, divided evenly over 60 months.
It’s the most favorable repayment option available.
Key Points to Remember
The five-year plan helps eliminate penalties and interest.
File your hearing request within 60 days.
Secure a hearing number to maintain your rights.
Explore insolvency and installment options post-hearing.
Frequently Asked Questions
What happens if I miss the 60-day deadline after a Texas sales tax audit?
If you miss the 60-day deadline to request a hearing, your case is sent to the collections field office. At that point, your best remaining option is usually a two-year installment plan, which does not waive penalties or interest.
Why is getting a hearing number important?
Obtaining a hearing number within the 60-day window preserves your right to appeal the audit findings. It ensures your case stays in the legal system rather than going straight to collections.
Can I apply for insolvency after the hearing?
Yes, after the administrative hearing, you may apply for insolvency. Even if denied, the Comptroller’s office may still offer a more favorable five-year installment agreement.
What makes the five-year installment plan better than the two-year one?
The five-year plan typically eliminates both penalties and interest. You pay only the original tax amount, evenly divided over 60 months, making it a more affordable and forgiving option.
Does the five-year plan apply retroactively to old tax years?
Yes. For example, if your audit covers 2017–2020, the five-year plan stops further interest accrual and divides only the tax due into monthly payments, rather than adding years of interest.