Texas: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Texas
In Texas, the Comptroller of Public Accounts will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Texas Comptroller of Public Accounts, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Comptroller of Public Accounts, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Texas
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Texas sales tax return in the event of underpayment, incorrect reportings, etc. The Comptroller of Public Accounts cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Texas is four years from the tax due date. If the tax was understated by at least 25%, no limitation period is provided.
Appealing to the Comptroller of Public Accounts in Texas
If you do not agree with a penalty or decision made by the Texas Comptroller of Public Accounts, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Comptroller of Public Accounts in less than thirty days after issuance of notice of determination.
TopAdministrative Sales Tax Appeals in Texas
This district has no administrative appeal body
TopJudicial Sales Tax Appeals in Texas
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the District Court within thirty days after denial of rehearing motion or within ninety days after filing protest
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