The Texas Franchise Tax: A Lower Federal Corporate Income Tax Rate and Recent Court Decisions Could Mean Higher Tax Bills for Texas Taxpayers

The Texas Franchise Tax: A Lower Federal Corporate Income Tax Rate and Recent Court Decisions Could Mean Higher Tax Bills for Texas Taxpayers

David E. Colmenero, 1 hour CPE credit

The recently enacted federal Tax Cuts and Jobs Act could make the Texas franchise tax more significant for Texas taxpayers.  With the reduction in the federal corporate income tax rate, many taxpayers are considering whether to incorporate.  This could prove to be a windfall for the State of Texas as corporations are subject to the Texas franchise tax whereas sole proprietorships and many general partnerships are excluded.  In addition, some recent judicial decisions could be adverse to many taxpayers.  This presentation will discuss implications of the federal law change for Texas franchise tax purposes and provide an overview of other recent developments, including judicial and administrative decisions and pending cases, focusing on areas of significant potential consequence to taxpayers and the Texas Comptroller.   Learn of these recent and pending developments and explore the opportunities and challenges they present for Texas taxpayers.   Learn also how the number of Texas tax audits will likely increase in the near future.