CHAPTER 111. COLLECTION PROCEDURES
TAX CODE
TITLE 2. STATE TAXATION
SUBTITLE B. ENFORCEMENT AND COLLECTION
CHAPTER 111. COLLECTION PROCEDURES
SUBCHAPTER A. COLLECTION DUTIES AND POWERS
Sec. 111.001. COMPTROLLER TO COLLECT TAXES. The comptroller
shall collect the taxes imposed by this title except as otherwise
provided by this title.
Acts 1981, 67th Leg., p. 1495, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.002. COMPTROLLER'S RULES; COMPLIANCE; FORFEITURE. (a)
The comptroller may adopt rules that do not conflict with the
laws of this state or the constitution of this state or the
United States for the enforcement of the provisions of this title
and the collection of taxes and other revenues under this title.
In addition to the discretion to adopt, repeal, or amend such
rules permitted under the constitution and laws of this state and
under the common law, the comptroller may adopt, repeal, or amend
such rules to reflect changes in the power of this state to
collect taxes and enforce the provisions of this title due to
changes in the constitution or laws of the United States and
judicial interpretations thereof.
(b) A person who does not comply with a rule made under this
section forfeits to the state an amount of not less than $25 nor
more than $500. Each day on which a failure to comply occurs or
continues is a separate violation.
(c) If a forfeiture is not paid, the attorney general shall file
suit to recover the forfeiture in a court of competent
jurisdiction in Travis County or in any other county where venue
lies.
(d) Any other provision of this code that imposes a different
penalty for the violation of a comptroller's rule made for the
enforcement or collection of a specific tax imposed by this title
prevails over the penalty provided by this section.
Acts 1981, 67th Leg., p. 1495, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1989, 71st Leg., ch. 231, Sec. 2, eff. Aug.
28, 1989.
Sec. 111.0021. APPLICATION TO OTHER TAXES AND FEES. This
chapter also applies to a tax or fee that the comptroller is
required to collect under a law not included in this title.
Added by Acts 1991, 72nd Leg., ch. 705, Sec. 1, eff. Sept. 1,
1991.
Sec. 111.0022. APPLICATION TO OTHER LAWS ADMINISTERED BY
COMPTROLLER. This subtitle and Subtitle A of this title apply to
the administration, collection, and enforcement of other taxes,
fees, and charges, including penalties, or other financial
transactions, that the comptroller is required or authorized to
collect or administer under other law, to the extent that the
other law does not conflict with this subtitle or Subtitle A of
this title.
Added by Acts 1993, 73rd Leg., ch. 486, Sec. 1.02, eff. Sept. 1,
1993.
Sec. 111.003. COMPTROLLER'S INVESTIGATIONS. (a) On the
governor's request, the comptroller shall:
(1) investigate the books and accounts of assessing and
collecting officers of the state and other officers or persons
receiving, disbursing, or possessing public funds;
(2) perform other duties and make investigations in relation to
public funds as requested by the governor; and
(3) investigate any state institution and its policies,
management, and operation, including the fiscal affairs and the
conduct and efficiency of any state employee of the institution.
(b) The comptroller shall report to the governor the results of
an investigation requested under Subsection (a) of this section.
The report must be written and include:
(1) a description of each violation of the revenue laws;
(2) a description of the failure, if any, to enforce revenue
laws;
(3) the name of each person reasonably believed to have
committed a violation or to have been guilty of nonfeasance; and
(4) if a state institution is investigated, a description of the
expenditures of the institution and of all sums of money due the
state, the ascertainment and collection of which does not devolve
upon other officers of the state under existing law.
(c) A person connected with the public service shall submit all
books, records, and accounts to the comptroller without delay on
the request of the comptroller when conducting an investigation
under Subsection (a) of this section.
(d) On the receipt of a report that indicates a violation of
revenue laws or neglect of duty, the governor shall notify the
attorney general, who shall institute criminal and civil
proceedings in the name of the state against persons accused of a
violation or neglect of duty.
(e) The comptroller may at any time examine and investigate the
expenditure of appropriated money for a state institution or for
any other purpose or for improvements made by the state on state
property or money received and disbursed by any board authorized
to receive and disburse state money. The comptroller shall
investigate any state institution when required by information
coming to his own knowledge.
Acts 1981, 67th Leg., p. 1495, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.0034. ADVANCED DATABASE SYSTEM FOR AUDITS. (a) The
comptroller shall develop an advanced electronic audit database
system for use by the comptroller's audit division. The system
must:
(1) centralize management of audit transaction data;
(2) enhance the quality control of data; and
(3) be compatible with other data systems of the state.
(b) The comptroller may contract with a vendor to develop or
implement the system.
(c) If the comptroller contracts with a vendor to develop or
implement the system, the comptroller must protect any
confidential information provided to the vendor. A person who
receives confidential information under this section and each
employee or agent of that person is subject to the same
prohibitions against disclosure of the information, and the same
penalties and sanctions for improper disclosure, that apply to
the comptroller.
Added by Acts 2001, 77th Leg., ch. 1272, Sec. 5.01, eff. June 15,
2001.
Sec. 111.0035. ADVANCED DATABASE SYSTEM FOR TAX COLLECTIONS.
(a) The comptroller may contract with an appropriate vendor to
develop and implement an advanced database system to enhance tax
collections.
(b) Subject to Subsection (c), the total amount of compensation
paid to the vendor that develops, implements, and maintains the
advanced database system is equal to the product of:
(1) the percentage stated in the contract; and
(2) the amount of revenue collected from taxpayers by the
comptroller, after all available administrative and judicial
appeals are exhausted, as a result of audit and enforcement
actions taken on cases identified from the system.
(c) The amount of compensation paid to a vendor under Subsection
(b) may not exceed the maximum amount, if any, stated in the
contract between the comptroller and the vendor.
(d) The comptroller may pay compensation to a vendor under this
section periodically at the times specified in the contract
between the comptroller and the vendor. The comptroller shall
determine the amount of a periodic payment in accordance with
Subsections (b) and (c). In computing the amount under Subsection
(b)(2), the comptroller may include a case only if the case:
(1) becomes administratively final during the period covered by
the payment; and
(2) is not the subject of litigation at the end of that period.
(e) The comptroller may pay a vendor under this section only
through warrants issued or electronic funds transfers initiated
by the comptroller. The comptroller shall account for the
compensation as a subtraction from tax collections and not as a
general expense of the comptroller.
(f) Except as provided by Subsection (g), the comptroller shall
award a contract made under this section through a competitive
bidding process that complies with Section 2155.132, Government
Code. If the comptroller receives not more than three bids
through the competitive bidding process, the comptroller shall
report the number of bidders to the Legislative Budget Board
before awarding the contract.
(g) The comptroller may enter into separate contracts with
additional appropriate vendors willing and able to develop and
implement an advanced database system to enhance tax collections
at the same rate and under the same terms and conditions as the
contract awarded through competitive bidding.
(h) Except as specifically provided by this section, the
comptroller may include any term or condition in a contract made
under this section that the comptroller considers necessary or
advisable to maximize enhancement of tax collections while
otherwise protecting the state's interests.
(i) The comptroller shall report semiannually to the Legislative
Budget Board the:
(1) amount of revenue collected under this section; and
(2) amount of compensation awarded to a vendor under this
section.
(j) A person acting on behalf of this state under a contract
authorized by this section does not exercise any of the sovereign
power of this state, except that the person is an agent of this
state for purposes of developing and implementing an advanced
database system to enhance tax collections.
(k) The comptroller may provide to a person acting on behalf of
this state under a contract authorized by this section any
confidential information in the custody of the comptroller that
is necessary to develop and implement an advanced database system
to enhance tax collections and that the comptroller is not
prohibited from sharing under an agreement with another state or
the federal government. A person who receives confidential
information under this subsection and each employee or agent of
that person is subject to each prohibition against disclosure of
the information that applies to the comptroller or an employee of
the comptroller. A person, employee, or agent who receives
confidential information under this subsection and improperly
discloses that information is subject to the same penalties and
sanctions that would apply to the comptroller or an employee of
the comptroller for that disclosure.
Added by Acts 1997, 75th Leg., ch. 927, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 1272, Sec. 5.02, eff.
June 15, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.108, eff. September 1, 2007.
Sec. 111.0036. OUT-OF-STATE AUDITS. (a) The comptroller may
contract with one or more appropriate persons to perform tax
audits in any state that is not covered by a comptroller field
office. A contract may provide for a person to perform tax audits
in more than one state.
(b) Subject to Subsection (c), the amount of compensation paid
to a person performing tax audits under this section is equal to
the product of:
(1) the percentage stated in the contract between the
comptroller and the person; and
(2) the amount of revenue collected from taxpayers by the
comptroller, after all available administrative and judicial
appeals are exhausted, as a result of those audits.
(c) The maximum percentage rate stated in a contract may not
exceed 12 percent. In addition, the amount of compensation paid
to a person under Subsection (b) may not exceed the maximum
amount, if any, stated in the contract between the comptroller
and the person.
(d) The comptroller may pay compensation to a person under this
section periodically at the times specified in the contract
between the comptroller and the person. The comptroller shall
determine the amount of a periodic payment in accordance with
Subsections (b) and (c). In computing the amount under Subsection
(b)(2), the comptroller may include a case only if the case:
(1) becomes administratively final during the period covered by
the payment; and
(2) is not the subject of litigation at the end of that period.
(e) The comptroller may pay a person under this section only
through warrants issued or electronic funds transfers initiated
by the comptroller. The comptroller shall account for the
compensation as a subtraction from tax collections and not as a
general expense of the comptroller.
(f) Except as provided by Subsection (g), the comptroller shall
award a contract made under this section through a competitive
bidding process that complies with Section 2155.132, Government
Code. If the comptroller receives not more than three bids
through the competitive bidding process, the comptroller shall
report the number of bidders to the Legislative Budget Board
before awarding the contract.
(g) The comptroller may enter into separate contracts with
additional appropriate persons willing and able to perform tax
audits in other states that are not covered by comptroller field
offices at the same rate and under the same terms and conditions
as the contract awarded through competitive bidding.
(h) The comptroller shall report semiannually to the Legislative
Budget Board the:
(1) amount of revenue collected under this section; and
(2) amount of compensation awarded to a person with whom the
comptroller contracts under this section.
(i) A person acting on behalf of this state under a contract
authorized by this section does not exercise any of the sovereign
power of this state, except that the person is an agent of this
state for purposes of performing tax audits.
(j) The comptroller may provide to a person acting on behalf of
this state under a contract authorized by this section any
confidential information in the custody of the comptroller
relating to a taxpayer that is necessary to the audit of the
taxpayer and that the comptroller is not prohibited from sharing
under an agreement with another state or the federal government.
A person who receives confidential information under this
subsection and each employee or agent of that person are subject
to each prohibition against disclosure of confidential
information obtained from a taxpayer or this state in connection
with a tax audit that applies to the comptroller or an employee
of the comptroller. A person, employee, or agent who receives
confidential information under this subsection and improperly
discloses that information is subject to the same penalties and
sanctions that would apply to the comptroller or an employee of
the comptroller for that disclosure.
Added by Acts 1997, 75th Leg., ch. 927, Sec. 1, eff. Sept. 1,
1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.109, eff. September 1, 2007.
Sec. 111.004. POWER TO EXAMINE RECORDS AND PERSONS. (a) For
the purpose of carrying out the terms of this title the
comptroller may examine at the principal or any other office in
the United States of any person, firm, agent, or corporation
permitted to do business in this state, all books, records and
papers and also any of their officers or employees under oath.
(b) If any person refuses to permit an examination or answer any
question authorized by Subsection (a) of this section, the
comptroller may certify the fact of the refusal to the secretary
of state, who shall immediately forfeit the charter or the permit
to do business of the person until the examination as required is
completed.
(c) No charge may be made by the comptroller to examine a book,
record, or paper or to question an officer or employee.
(d) The comptroller's authority to examine books, records, and
papers under this chapter extends to all books, records, papers,
and other objects which the comptroller determines are necessary
for conducting a complete examination under this title.
Acts 1981, 67th Leg., p. 1496, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.0041. RECORDS. (a) Any taxpayer who is required by
this title to keep records shall keep those records open to
inspection by the comptroller, the attorney general, or the
authorized representatives of either of them for four years.
(b) This section prevails over any other conflicting provision
of this title.
Acts 1981, 67th Leg., p. 1496, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1999, 76th Leg., ch. 1467, Sec. 2.11, eff.
Oct. 1, 1999.
Sec. 111.0042. SAMPLING IN AUDITING; PROJECTING ASSESSMENTS.
(a) Repealed by Acts 1983, 68th Leg., p. 982, ch. 234, Sec. 1,
eff. May 25, 1983.
(b) Sampling auditing methods are appropriate if:
(1) the taxpayer's records are so detailed, complex, or
voluminous that an audit of all detailed records would be
unreasonable or impractical;
(2) the taxpayer's records are inadequate or insufficient, so
that a competent audit for the period in question is not
otherwise possible; or
(3) the cost of an audit of all detailed records to the taxpayer
or to the state will be unreasonable in relation to the benefits
derived, and sampling procedures will produce a reasonable
result.
(c) Before using a sample technique to establish a tax
liability, the comptroller or his designee must notify the
taxpayer in writing of the sampling procedure to be used.
(d) The sample must reflect as nearly as possible the normal
conditions under which the business was operated during the
period to which the audit applies. If a taxpayer can demonstrate
that a transaction in a sample period is not representative of
the taxpayer's business operations, the transaction shall be
eliminated from the sample and be separately assessed in the
audit. If records are inadequate to reflect accurately the
business operations of the taxpayer, the comptroller or his
designee shall determine the best information available and base
his audit report on that information.
(e) If the taxpayer demonstrates that any sampling method used
by the comptroller was not in accordance with generally
recognized sampling techniques, the audit will be dismissed as to
that portion of the audit established by projection based upon
the sampling method, and a new audit may be performed.
Acts 1981, 67th Leg., p. 1496, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 982, ch. 234, Sec. 1,
eff. May 25, 1983.
Sec. 111.0043. GENERAL AUDIT AND PREHEARING POWERS. (a) In
this section:
(1) "Person" includes an individual, corporation, partner,
partnership, officer, or director of a corporation, joint
venture, trust, trustee, agent, or association.
(2) "Taxpayer" means the person whose tax obligation the
comptroller is seeking to determine.
(b)(1) Before a determination of or a hearing on a taxpayer's tax
obligation, if any, the comptroller may issue a subpoena
addressed to the sheriff or constable of any county in this state
to require any person who the comptroller determines may provide
assistance in the examination of a taxpayer's tax obligation to
appear at the place and time stated in the subpoena for the
taking of his oral deposition before an official authorized to
take depositions. The subpoena may require the person to produce
at the time of the deposition books, documents, records, papers,
accounts, and other objects as may be specified by the
comptroller. The subpoena must include a statement setting out
the reason why the requested material is needed.
(2) The deposition shall be taken in the county of the person's
residence or in the county where the person is employed or
regularly transacts business. The subpoena shall specify that the
person shall remain in attendance from day to day until the
deposition is begun and completed.
(3) The officer taking the oral deposition may not sustain
objections to any of the testimony taken or exclude any of it.
(4) When the testimony is fully transcribed, the deposition
shall be submitted to the person for examination and read to or
by the person, unless the examination and reading are waived in
writing by the person and by the comptroller. However, if the
person is represented by an attorney of record, the deposition
officer shall notify the attorney of record in writing by
registered mail or certified mail that the deposition is ready
for examination and reading at the office of the deposition
officer. If the person does not appear and examine, read, and
sign the deposition within 10 days after the mailing of the
notice, the deposition shall be returned and may be used as fully
as though signed. The officer shall enter on the deposition any
changes in form or substance that the person desires to make and
a statement of the reasons given by the person for making them.
The deposition shall then be signed by the person, unless the
person and the comptroller by stipulation waive the signing or
the person is ill, cannot be found, or refuses to sign. If the
deposition is not signed by the person, the officer shall sign it
and state on the record the fact of the waiver, illness, or
absence of the person or the fact of the refusal to sign,
together with the reason, if any, given for failure to sign. The
deposition may then be used as fully as though signed.
(5) The deposition shall be returned to the comptroller by the
official taking the deposition either by mail or by delivering it
in person.
(c) Before a determination of or a hearing on a taxpayer's tax
obligation, if any, the comptroller may:
(1) issue a subpoena addressed to the sheriff or constable of
any county in this state to require any person to produce at the
place and time stated in the subpoena books, documents, records,
papers, accounts, and other objects that the comptroller
determines may assist in an examination of a person's tax
obligation;
(2) issue an order to a person to permit entry upon designated
land or other property in his possession or control for the
purpose of inspecting, measuring, surveying, or photographing the
property or any designated object or operation on the property
that may be material to any matter involved in the examination;
the order must specify the time, place, and manner of making the
inspection, measurement, or survey and taking the copies and
photographs and may prescribe any terms and conditions that are
just;
(3) copy or conduct a complete examination of books, documents,
records, papers, accounts, and other objects that are produced as
a result of the subpoenas or orders specified in this section;
and
(4) serve or have served by his designated agent any subpoena or
order issued under this section by delivering a copy of the
subpoena to the person.
(d) A person, other than the taxpayer, who is subpoenaed to give
a deposition or to produce books, records, papers, or other
objects under the authority of this section is entitled to
receive after presentation of a voucher sworn by the person and
approved by the comptroller:
(1) mileage of 20 cents a mile, or a greater amount as
prescribed by agency rule, for going to and returning from the
place of the hearing or the place where the deposition is taken,
if the place is more than 25 miles from the person's place of
residence; and
(2) a fee of $20 a day, or a greater amount as prescribed by
agency rule, for each day or part of a day the person is
necessarily present as a deponent.
(e) If a person fails to comply with a subpoena or order issued
under this section, the comptroller may:
(1) acting through the attorney general, bring suit to enforce
the subpoena or order in a district court of Travis County; the
court, if it determines that good cause exists for the issuance
of a subpoena or order, shall order the compliance with the
requirements of the subpoena or order; failure to obey the order
of the court may be punishable by the court as contempt;
(2) use records, books, papers, and other documents obtained or
depositions taken under this section only in an administrative
hearing of the comptroller or a judicial proceeding brought by or
against the comptroller; the information may be made available to
the federal government or to another state under an exchange
agreement; and
(3) delegate his authority to issue subpoenas or orders and to
participate in the taking of depositions as specified in this
section to any attorney employed by him.
(f) If a foreign corporation doing business in this state has
such contact with this state that it becomes subject to the taxes
administered and collected by the comptroller and fails to
appoint or maintain a registered agent in this state, or if the
registered agent cannot with reasonable diligence be found at the
registered office, then the secretary of state shall be an agent
of the corporation and may be served with any subpoena or other
order issued under this section in the manner provided for
service of process in Article 8.10, Texas Business Corporation
Act, as amended.
(g) Any person, including the taxpayer, shall be entitled to
obtain upon request a copy of any statement he has previously
made concerning the examination or its subject matter and which
is in the possession, custody, or control of the comptroller.
Copies of statements made to the comptroller by any person which
are used as a basis for an assessment against a taxpayer may be
obtained by the taxpayer upon request. If the request is refused,
the person may move for an agency order under this subsection.
For the purpose of this section, a statement previously made is:
(1) a written statement signed or otherwise adopted or approved
by the person making it; or
(2) a stenographic, mechanical, electrical, or other recording,
or a transcription thereof, which is a substantially verbatim
recital of an oral statement by the person making it and
contemporaneously recorded.
Acts 1981, 67th Leg., p. 1497, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.0044. SPECIAL PROCEDURES FOR THIRD-PARTY ORDERS AND
SUBPOENAS. (a)(1) If any order or subpoena described in Section
111.0043 of this code is served on any person who is a
third-party recordkeeper, and the order or subpoena requires the
production of any portion of records made or kept of the business
transactions or affairs of any person (other than the person
ordered or subpoenaed) who is identified in the description of
the record contained in the order or subpoena, then notice of the
order or subpoena shall be given to any person so identified
within three days of the day on which the service on the
third-party recordkeeper is made but no later than the 14th day
before the day fixed in the order or subpoena as the day upon
which the records are to be examined. The notice shall be
accompanied by a copy of the order or subpoena which has been
served and shall contain directions for staying compliance with
the order or subpoena under Subsection (b)(2) of this section.
(2) The notice shall be sufficient if, on or before the third
day, the notice is delivered in hand to the person entitled to
notice or is mailed by certified or registered mail to the last
mailing address of the person or, in the absence of a last known
address, is left with the person ordered or subpoenaed. If the
notice is mailed, it shall be sufficient if mailed to the last
known address of the person entitled to notice.
(3) For purposes of this section, the term "third-party
recordkeeper" means:
(A) a mutual savings bank, cooperative bank, domestic building
and loan association, or other savings institution chartered and
supervised as a savings and loan or similar association under
federal or state law, a bank as defined in Section 581 of the
Internal Revenue Code of 1954, as amended (26 U.S.C. 581), or any
credit union within the meaning of Section 501(c)(14)(A),
Internal Revenue Code;
(B) any consumer reporting agency as defined under Section
603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f));
(C) any person extending credit through the use of credit cards
or similar devices; and
(D) any broker as defined in Section 3(a)(4) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(4)).
(4) Subsection (a)(1) of this section may not apply to an order
or subpoena served on the person with respect to whose liability
the order or subpoena is issued or an officer or employee of the
person; or any order or subpoena to determine whether or not
records of the business transactions or affairs of an identified
person have been made or kept; or any order or subpoena described
in Subsection (e) of this section.
(5) An order or subpoena to which this subsection applies shall
identify the taxpayer to whom the order or subpoena relates and
to whom the records pertain and shall provide other information
to enable the person ordered or subpoenaed to locate the records
required under the order or subpoena.
(b)(1) Notwithstanding any other law or rule of law, a person who
is entitled to notice of an order or subpoena under Subsection
(a) of this section shall have the right to intervene in any
proceeding with respect to the enforcement of the order or
subpoena under Subsection (e) of Section 111.0043 of this code.
(2) Notwithstanding any other law or rule of law, a person who
is entitled to notice of an order or subpoena under Subsection
(a) of this section shall have the right to stay compliance with
the order or subpoena if, not later than the 14th day after the
day the notice is given in the manner provided in Subsection
(a)(2) of this section:
(A) notice in writing is given to the person ordered or
subpoenaed not to comply with the order or subpoena;
(B) a copy of the notice not to comply with the order or
subpoena is mailed by registered or certified mail to the person
and to the office the comptroller directs in the notice referred
to in Subsection (a)(1) of this section; and
(C) suit is filed against the comptroller in a district court of
Travis County to stay compliance with the order or subpoena.
(c) No examination of any records required to be produced under
an order or subpoena as to which notice is required under
Subsection (a) of this section may be made:
(1) before the expiration of the 14-day period allowed for the
notice not to comply under Subsection (b)(2) of this section; or
(2) when the requirements of Subsection (b)(2) of this section
have been met, except in accordance with an order issued by a
district court of Travis County authorizing examination of the
records or with the consent of the person staying compliance.
(d) If any person takes any action as provided in Subsection (b)
of this section and such person is the person with respect to
whose liability the order or subpoena is issued under Section
111.0043 of this code (or is the agent, nominee, or other person
acting under the direction or control of such person), then the
running of any period of limitations under Subchapter D of this
chapter with respect to the person shall be suspended for the
period during which a proceeding and appeals of the proceeding
with respect to the enforcement of such order are pending.
(e) Any order or subpoena issued under Section 111.0043 of this
code that does not identify the person with respect to whose
liability the order is issued may be served only after a court
proceeding in which the comptroller establishes that:
(1) the order relates to the investigation of a particular
person or ascertainable group or class of persons;
(2) there is a reasonable basis for believing that the person or
group or class of persons may fail or may have failed to comply
with any provision of state law; and
(3) the information sought to be obtained from the examination
of the records (and the identity of the person or persons with
respect to whose liability the order is issued) is not readily
available from other sources.
(f) In the case of an order or subpoena issued under Section
111.0043 of this code, the provisions of Subsections (a)(1) and
(b) of this section may not apply if, upon petition by the
comptroller, the court determines, on the basis of the facts and
circumstances alleged, that there is reasonable cause to believe
the giving of notice may lead to attempts to conceal, destroy, or
alter records relevant to the examination, to prevent the
communication of information from other persons through
intimidation, bribery, or collusion, or to flee to avoid
prosecution, testifying, or production of records.
(g)(1) A district court of Travis County has jurisdiction to hear
and determine proceedings brought under Subsection (e) or (f) of
this section. The determinations required to be made under
Subsections (e) and (f) of this section shall be ex parte and
shall be made solely upon the petition and supporting affidavits.
An order denying the petition shall be deemed a final order that
may be appealed.
(2) Except for cases the court considers of greater importance,
a proceeding brought for the enforcement of any order, or a
proceeding under this section, and appeals, take precedence on
the docket over all cases and shall be assigned for hearing and
decided at the earliest practicable date.
(h) The comptroller shall by rule establish the rates and
conditions for payments to reimburse reasonably necessary costs
directly incurred by third-party recordkeepers in searching for,
reproducing, or transporting books, papers, records, or other
data required to be produced by order or subpoena upon request of
the comptroller. The reimbursement shall be in addition to
mileage and fees paid under Subsections (d)(1) and (d)(2) of
Section 111.0043 of this code.
Acts 1981, 67th Leg., p. 1499, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.0045. USE OF OUTSIDE PERSONNEL; DELEGATION OF POWERS.
(a) As necessary to enhance productivity, the comptroller may
employ or contract for the services of accountants, assistants,
auditors, clerks, information technology specialists, and
investigators to:
(1) provide or use the equipment acquired under Subchapter G;
and
(2) assist with the administration of this code.
(b) The comptroller may delegate to persons employed or
contracted under this section the power to perform duties as
required.
Added by Acts 2001, 77th Leg., ch. 1272, Sec. 5.03, eff. June 15,
2001.
Sec. 111.00455. CONTESTED CASES CONDUCTED BY TAX DIVISION OF
STATE OFFICE OF ADMINISTRATIVE HEARINGS. (a) The tax division
of the State Office of Administrative Hearings shall conduct any
contested case hearing as provided by Section 2003.101,
Government Code, in relation to the collection, receipt,
administration, and enforcement of:
(1) a tax imposed under this title; and
(2) any other tax, fee, or other amount that the comptroller is
required to collect, receive, administer, or enforce under a law
not included in this title.
(b) The following are not contested cases under Subsection (a)
and Section 2003.101, Government Code:
(1) a show cause hearing or any hearing not related to the
collection, receipt, administration, or enforcement of the amount
of a tax or fee imposed, or the penalty or interest associated
with that amount, except for a hearing under Section 151.157(f),
151.1575(c), 151.712(g), 154.1142, or 155.0592;
(2) a property value study hearing under Subchapter M, Chapter
403, Government Code;
(3) a hearing in which the issue relates to:
(A) Chapters 72-75, Property Code;
(B) forfeiture of a right to do business;
(C) a certificate of authority;
(D) articles of incorporation;
(E) a penalty imposed under Section 151.7031;
(F) the refusal or failure to settle under Section 111.101; or
(G) a request for or revocation of an exemption from taxation;
and
(4) any other hearing not related to the collection, receipt,
administration, or enforcement of the amount of a tax or fee
imposed, or the penalty or interest associated with that amount.
(c) A reference in law to the comptroller that relates to the
performance of a contested case hearing described by Subsection
(a) means the tax division of the State Office of Administrative
Hearings.
Added by Acts 2007, 80th Leg., R.S., Ch.
354, Sec. 1, eff. June 15, 2007.
Sec. 111.00457. INFORMATION RELATING TO OTHER PERMIT OR LICENSE
REQUIREMENTS. (a) The comptroller shall include the following
statement on each application for a permit or license issued by
the comptroller:
WARNING. You may be required to obtain an additional permit or
license from the State of Texas or from a local governmental
entity to conduct business. A listing of links relating to
acquiring licenses, permits, and registrations from the State of
Texas is available online at
http://www.TexasOnline.com/portal/tol/en/9/1. You may also want
to contact the municipality and county in which you will conduct
business to determine any local governmental requirements.
(b) The statement required by Subsection (a) must be placed in
the applicant signature box or, if the application does not have
an applicant signature box, on the last line above the applicant
signature line, and in bold typeface that is at least as large as
any other typeface appearing in the general instructions relating
to the application.
(c) The comptroller shall revise the statement required by
Subsection (a) as necessary to reflect any change in the Internet
address that provides the listing of links.
Added by Acts 2009, 81st Leg., R.S., Ch.
302, Sec. 1, eff. June 19, 2009.
Sec. 111.0046. PERMIT OR LICENSE. (a) The comptroller shall
refuse to issue or renew any permit or license to a person who:
(1) is not permitted or licensed as required by law for a
different tax or activity administered by the comptroller, except
if the issuance or renewal of such license or permit is pending
before the comptroller; or
(2) is currently delinquent in the payment of any tax collected
by the comptroller.
(b) The comptroller by rule may establish a minimum age for a
person to be eligible to apply for a permit or license issued by
the comptroller.
Added by Acts 1985, 69th Leg., ch. 59, Sec. 1, eff. April 30,
1985. Amended by Acts 2003, 78th Leg., ch. 209, Sec. 13, eff.
Oct. 1, 2003.
Sec. 111.0047. SUSPENSION AND REVOCATION OF PERMIT OR LICENSE.
(a) If a person fails to comply with any provision of this title
or with a rule of the comptroller adopted under this title, the
comptroller, after a hearing, may revoke or suspend any permit or
license issued to the person.
(b) A person whose permit or license the comptroller proposes to
revoke or suspend under this section is entitled to 20 days'
written notice of the time and place of the hearing on the
revocation or suspension. At the hearing the person must show
cause why each permit or license should not be suspended or
revoked.
(c) The comptroller shall give written notice of the revocation
or suspension of a permit or license to the holder of the permit
or license.
(d) Notices under this section may be served on the holder of
the permit or license personally or may be mailed to the holder's
address as shown in the records of the comptroller.
Added by Acts 1985, 69th Leg., ch. 59, Sec. 1, eff. April 30,
1985. Amended by Acts 1989, 71st Leg., ch. 238, Sec. 42, eff.
Jan. 1, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 6, Sec. 7; Acts
1993, 73rd Leg., ch. 107, Sec. 4.08, eff. Aug. 30, 1993; Acts
1993, 73rd Leg., ch. 284, Sec. 32, eff. Sept. 1, 1993; Acts 1997,
75th Leg., ch. 1040, Sec. 2, eff. Sept. 1, 1997.
Sec. 111.0048. REISSUED OR NEW PERMIT OR LICENSE AFTER
REVOCATION OR SUSPENSION. (a) A new permit or license may not
be issued to a former holder of a revoked permit or license
unless the comptroller is satisfied that the person will comply
with the provisions of this title and the rules of the
comptroller relating to this title.
(b) The comptroller may prescribe the terms under which a
suspended permit or license may be reissued.
Added by Acts 1985, 69th Leg., ch. 59, Sec. 1, eff. April 30,
1985. Amended by Acts 1989, 71st Leg., ch. 238, Sec. 43, eff.
Jan. 1, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 6, Sec. 8; Acts
1993, 73rd Leg., ch. 107, Sec. 4.09, eff. Aug. 30, 1993; Acts
1993, 73rd Leg., ch. 284, Sec. 33, eff. Sept. 1, 1993; Acts 1997,
75th Leg., ch. 1040, Sec. 3, eff. Sept. 1, 1997.
Sec. 111.0049. APPEALS. A taxpayer may appeal the revocation or
suspension of a permit or license under Section 111.0046 and
111.0047 of this code in the same manner that appeals are made
from a final deficiency determination.
Added by Acts 1985, 69th Leg., ch. 59, Sec. 1, eff. April 30,
1985.
Sec. 111.005. GOVERNMENTAL ENTITIES TO COOPERATE. Each
department, officer, and employee of the state or of a local
governmental entity shall cooperate with and give reasonable
assistance and information to the comptroller when performing
authorized duties.
Acts 1981, 67th Leg., p. 1502, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.006. CONFIDENTIALITY OF INFORMATION. (a) The
following matter is confidential and may not be used publicly,
opened to public inspection, or disclosed except as permitted by
this section:
(1) a federal tax return or federal tax return information
required to have been submitted to the comptroller with a state
tax return or report; and
(2) all information secured, derived, or obtained by the
comptroller or the attorney general during the course of an
examination of the taxpayer's books, records, papers, officers,
or employees, including an examination of the business affairs,
operations, source of income, profits, losses, or expenditures of
the taxpayer.
(b) All information made confidential in this title may not be
subject to subpoena directed to the comptroller or the attorney
general except in a judicial or an administrative proceeding in
which this state, another state, or the federal government is a
party.
(c) The comptroller or the attorney general may use information
or records made confidential by provisions of this title to
enforce any provisions of this title or may authorize their use
in a judicial or an administrative proceeding in which this
state, another state, or the federal government is a party.
(d) The comptroller or the attorney general may disclose to a
municipality or county the information described by Subsection
(a)(2) if:
(1) the information was derived from an examination performed
for the purpose of ascertaining compliance with the hotel
occupancy tax imposed under Chapter 156;
(2) the municipality or county makes a written request for the
information;
(3) the municipality or county making the request has imposed a
local hotel occupancy tax authorized by Chapter 351 or 352, as
applicable;
(4) the municipality or county uses the information only for the
enforcement or administration of its local hotel occupancy tax;
and
(5) to the extent consistent with the use authorized by
Subdivision (4), the municipality or county keeps the information
confidential as provided by this section.
(e) Information made confidential in this title may be examined
by a state officer, a law enforcement officer of this state, a
tax official of another state, a tax official of the United
Mexican States, an official of the United States, or an
authorized representative of any of these officers or officials,
if:
(1) the comptroller authorizes the examination; and
(2) for an official or officer of another state, the United
States, or the United Mexican States, a reciprocal agreement
exists allowing the comptroller to examine tax information under
the control of the officer or official in a manner substantially
equivalent to the officer's or official's access to information
under this subsection.
(f) Subsection (a)(2) does not apply to information obtained by
the comptroller or the attorney general during an examination of
a governmental body, as that term is defined in Section 552.003,
Government Code. However, information obtained by the comptroller
or the attorney general during an examination of the governmental
body that is confidential under law when in the possession of the
governmental body remains confidential while in the possession of
the comptroller or the attorney general.
(g) Information made confidential by Subsection (a)(2) that
relates to a taxpayer's responsibilities under Chapter 162 may be
examined by an official of another state or of the United States
if:
(1) the official has information that would assist the
comptroller in administering Chapter 162;
(2) the comptroller is conducting or may conduct an examination
or a criminal investigation of the taxpayer that is the subject
of the information made confidential by Subsection (a)(2); and
(3) a reciprocal agreement exists allowing the comptroller to
examine information under the control of the official in a manner
substantially equivalent to the official's access to information
under this subsection.
Acts 1981, 67th Leg., p. 1502, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1995, 74th Leg., ch. 175, Sec. 1, eff.
Sept. 1, 1995; Acts 1995, 74th Leg., ch. 351, Sec. 4, eff. Sept.
1, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 29.10, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1040, Sec. 4, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 1218, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1227, Sec. 2, eff. September 1, 2009.
Sec. 111.007. CRIMINAL PENALTIES FOR DISCLOSING FEDERAL TAX
INFORMATION. (a) The comptroller, a person who formerly held
the office of comptroller, or an employee or former employee of
the comptroller commits an offense if he discloses in a manner
unauthorized by law a federal tax return or federal tax return
information that is required to be submitted to the comptroller
by any person.
(b) An offense under this section is a misdemeanor punishable by
a fine of not more than $1,000 or by confinement in jail for not
more than one year, or by both a fine and confinement.
Acts 1981, 67th Leg., p. 1502, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.0075. USE OF INFORMATION RELATING TO TAX AUDITS. (a)
This section applies to information that:
(1) relates to a taxpayer that the comptroller is auditing or
intends to audit;
(2) is considered public information under Chapter 552,
Government Code; and
(3) is made available by the comptroller to a person who
requested that information under Chapter 552, Government Code.
(b) A person who obtains information described by Subsection (a)
and who is not a taxpayer to whom the information relates may
not, before the sixth day after the date the comptroller made the
information available to the person, use the information for the
direct solicitation of business or employment for pecuniary gain.
(c) If a direct solicitation of business or employment for
pecuniary gain is made by mail or by delivery by common or
contract carrier, the postmark or the receipt mark of the common
or contract carrier is prima facie evidence of the date the
information was used for that solicitation.
(d) A person who violates this section is subject to a civil
penalty of not more than:
(1) $500 for the first violation;
(2) $1,000 for the second violation; and
(3) $3,000 for each subsequent violation.
(e) At the request of the comptroller or the person to whom the
solicitation was directed, the attorney general or the
appropriate district or county attorney may institute and conduct
a suit to collect the penalty authorized by this section and to
restrain the person from continuing to violate this section.
(f) The penalty prescribed by this section is in addition to any
other penalty provided by law.
Added by Acts 2005, 79th Leg., Ch.
689, Sec. 1, eff. September 1, 2005.
Sec. 111.008. DEFICIENCY DETERMINATION. (a) If the comptroller
is not satisfied with a tax report or the amount of the tax
required to be paid to the state by a person, the comptroller may
compute and determine the amount of tax to be paid from
information contained in the report or from any other information
available to the comptroller.
(b) On making a determination under this section, the
comptroller shall notify the person against whom a determination
is made of the determination. The notice may be given by mail or
by personal service.
(c) If the notice is given by mail, it shall be addressed to the
taxpayer or other person at the taxpayer's address as it appears
in the records of the comptroller. Service by mail is complete
when the notice is deposited in a U.S. Post Office.
Acts 1981, 67th Leg., p. 1502, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.0081. WHEN PAYMENT IS REQUIRED. (a) Except as
provided in Subsections (b) and (c) of this section, the amount
of a determination made under this code is due and payable 10
days after it becomes final. If the amount of the determination
is not paid within 10 days after the day it became final, a
penalty of 10 percent of the amount of the determination,
exclusive of penalties and interest, shall be added.
(b) This section does not apply to a determination under Section
111.022.
(c) The amount of a determination made under this code is due
and payable 20 days after a comptroller's decision in a
redetermination hearing becomes final. If the amount of the
determination is not paid within 20 days after the day the
decision became final, a penalty of 10 percent of the amount of
the determination, exclusive of penalties and interest, shall be
added.
Added by Acts 1985, 69th Leg., ch. 37, Sec. 9, eff. Aug. 26,
1985. Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 8, eff.
Sept. 1, 2001.
Sec. 111.009. REDETERMINATION. (a) A person having a direct
interest in a determination may petition the comptroller for a
redetermination.
(b) A petition for redetermination must be filed before the
expiration of 30 days after the date on which the service of the
notice of determination is completed or the redetermination is
barred. If a petition for redetermination is not filed before the
expiration of the period provided by this subsection, the
determination is final on the expiration of the period.
(c) If the petition requests a hearing on the redetermination,
the person filing the petition is entitled to a hearing and to
receive notice of the hearing at least 20 days before the day of
the hearing.
(d) An order or decision of the comptroller on a petition for
redetermination becomes final 20 days after service on the
petitioner of the notice of the order or decision.
Acts 1981, 67th Leg., p. 1503, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 2, eff.
Sept. 1, 1991.
Sec. 111.010. SUIT TO RECOVER TAXES. (a) The attorney general
shall bring suit in the name of the state to recover delinquent
state taxes, tax penalties, and interest owed to the state.
(b) This section applies to state taxes imposed by this title or
by other laws not included in this title but does not apply to
the state ad valorem tax on property.
(c) Venue for and jurisdiction of a suit arising under this
section is exclusively conferred upon the district courts of
Travis County.
(d) The state is entitled to interest at the rate of 10 percent
a year on the amount of a judgment for the state beginning on the
day the judgment is signed and ending on the day the judgment is
satisfied.
Acts 1981, 67th Leg., p. 1503, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 519, ch. 107, Sec. 2,
eff. Sept. 1, 1983; Acts 1991, 72nd Leg., ch. 705, Sec. 3, eff.
Sept. 1, 1991; Acts 1995, 74th Leg., ch. 1000, Sec. 1, eff. Oct.
1, 1995.
Sec. 111.0102. SUIT CHALLENGING COLLECTION ACTION. Venue for
and jurisdiction of a suit that challenges or is for the purpose
of avoiding a comptroller collection action or state tax lien in
any manner is exclusively conferred on the district courts of
Travis County.
Added by Acts 2007, 80th Leg., R.S., Ch.
931, Sec. 1, eff. June 15, 2007.
Sec. 111.011. TAX COLLECTIONS AND REPORTS BY BUSINESSES;
ENFORCEMENT OF DUTIES. (a) If a person engaged in a business
the operation of which involves the receipt, collection, or
withholding of a tax imposed by this title fails to file a report
or pay the tax as required by this title, the attorney general
may bring suit for an injunction prohibiting the person from
continuing in that business until the report is filed and the tax
is paid.
(b) If a person engaged in business the operation of which
involves the receipt, collection, or withholding of a tax imposed
by this title receives, collects, or withholds more tax than is
authorized by law to be received, collected, or withheld or if
the person receives, collects, or withholds money from any other
person under a claim or representation that the receipt,
collection, or withholding is a tax imposed by this title or
other law and the amount received, collected, or withheld is not
a tax authorized by law, and the person does not voluntarily
comply with the notice set forth in Subsection (c) herein, the
attorney general shall bring suit for an injunction prohibiting
the person from the wrongful receipt, collection, or withholding
of the tax or alleged tax.
(c) Prior to filing suit for an injunction, the attorney general
shall send written notice by certified mail requesting that the
person shall cease any wrongful collections of taxes allowing 15
days for compliance from the date of notice.
(d) The venue for a suit under this section is in Travis County.
Acts 1981, 67th Leg., p. 1503, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1985, 69th Leg., ch. 177, Sec. 1, eff.
Sept. 1, 1985.
Sec. 111.012. SECURITY FOR THE PAYMENT OF TAXES. (a) If the
comptroller finds that a tax imposed by this title is insecure,
the comptroller may require a taxpayer to:
(1) provide security for the payment of taxes; or
(2) establish a tax escrow account at a bank or other financial
institution.
(b) The security may consist of:
(1) a cash deposit filed with the comptroller;
(2) a surety bond; or
(3) other security as permitted by the comptroller.
(c) The amount and form of the security shall be set by the
comptroller, except that the amount may not be more than double
the amount of taxes that the comptroller estimates will be due
from the taxpayer during the succeeding 12 months.
(d) The comptroller shall give notice to a taxpayer from whom
security or the establishment of a tax escrow account is required
under this section.
(e) The tax escrow account must be established not later than
the 10th day after the date notice is received from the
comptroller requiring the establishment of the account.
(f) Before the comptroller requires a taxpayer to establish a
tax escrow account, the comptroller must determine that:
(1) the taxpayer remitted or should have remitted a monthly
average of $500 or more in tax collected from customers for the
six-month period preceding the date that the notice requiring the
establishment of a tax escrow account is sent by the comptroller
to the taxpayer; and
(2) the taxpayer:
(A) failed to file two or more tax returns during the 12 months
preceding the date that the notice requiring the establishment of
a tax escrow account is sent by the comptroller to the taxpayer;
(B) has been issued a jeopardy determination under Section
111.022;
(C) has previously been determined to have collected tax but not
remitted that tax under an administrative hearings decision
issued by the comptroller;
(D) is insolvent because the taxpayer's liabilities exceed the
taxpayer's assets or the taxpayer is unable to pay the taxpayer's
debts as they become due;
(E) has assets that are subject to a court administered
receivership; or
(F) has been notified that security is required under this
section but has failed to provide evidence of the security on or
before the 30th day after the date the security was requested.
(g) If a taxpayer does not furnish security to the comptroller
or establish a tax escrow account as required by the comptroller
before the expiration of 10 days following the day on which
notice is received, the comptroller may:
(1) bring suit in a district court in Travis County for an order
enjoining the taxpayer from engaging in business until the
security is furnished or the tax escrow account is established;
or
(2) pursue any other remedies or collection actions available to
the comptroller under this chapter or Chapter 113 to ensure the
security is furnished or the tax escrow account is established.
Acts 1981, 67th Leg., p. 1503, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., ch. 483, Sec. 1, eff.
Sept. 1, 1991; Acts 2003, 78th Leg., ch. 209, Sec. 14, eff. Oct.
1, 2003.
Sec. 111.013. EVIDENCE: TAX CLAIMS. (a) In a suit involving
the establishment or collection of a tax imposed under Title 2 or
3 of this code, a certificate of the comptroller that shows a
delinquency is prima facie evidence of:
(1) the stated tax or amount of the tax, after all just and
lawful offsets, payments, and credits have been allowed;
(2) the stated amount of penalties and interest;
(3) the delinquency of the amounts; and
(4) the compliance of the comptroller with the applicable
provisions of this code in computing and determining the amount
due.
(b) The defendant may not deny a claim for taxes, penalties, or
interest unless the defendant timely files a sworn written denial
that specifically identifies the taxes, penalties, and interest
the defendant asserts are not due and the amounts of tax,
penalties, and interest that are not due.
Acts 1981, 67th Leg., p. 1504, ch. 389, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 4, eff.
Sept. 1, 1991.
Sec. 111.014. EVIDENCE: COPIES OF GRAPHIC MATTER. (a) A copy
of graphic matter is admissible, without further proof, in a
judicial or administrative proceeding concerning the
administration or enforcement of a tax imposed by this title if:
(1) the copy or information contained in the copy is relevant;
(2) the copy is a reproduction made by a photographic,
photostatic, magnetic, or other process that accurately
duplicates or forms a durable medium for accurately reproducing
the original matter or information contained in the original
matter; and
(3) the graphic matter was kept or recorded by the comptroller
in the performance of official functions.
(b) "Graphic matter" means a memorandum, entry, report, or other
document, a record of information contained in a memorandum,
entry, report, or other document, or a record of an action taken
by the comptroller.
(c) The admissibility of a copy of graphic matter as allowed
under this section does not affect the admissibility of the
original matter or other competent evidence offered to show the
incorrectness of the copy or of information reflected in the
copy.
Acts 1981, 67th Leg., p. 1504, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.015. REMEDIES CUMULATIVE. The rights, powers,
remedies, liens, and penalties provided by this title are
cumulative of other rights, powers, remedies, liens, and
penalties for the collection of taxes provided by this title and
by other law.
Acts 1981, 67th Leg., p. 1504, ch. 389, Sec. 1, eff. Jan. 1,
1982.
Sec. 111.016. PAYMENT TO THE STATE OF TAX COLLECTIONS. (a) Any
person who receives or collects a tax or any money represented to
be a tax from another person holds the amount so collected in
trust for the benefit of the state and is liable to the state for
the full amount collected plus any accrued penalties and interest
on the amount collected.
(a-1) A person is presumed to have received or collected a tax
or money represented to be a tax for the purpose of this section
if the person files, or causes to be filed, a tax return or
report with the comptroller showing tax due. A person, including
a person who is on the accrual method of accounting, may rebut
this presumption by