Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3.
TAX ADMINISTRATION
Subchapter A. GENERAL RULES
34 TAC §3.9
The Comptroller of Public Accounts proposes an amendment
to §3.9, concerning electronic filing of returns and reports; electronic
transfer of certain payments by certain taxpayers. This rule is amended to
incorporate changes made to Tax Code, Chapter 111, by Senate Bill 640, 77th
Legislature, 2001. The amendment lowers the limit for required electronic
payments from $250,000 to $100,000, requires electronic filing of tax returns
by certain taxpayers, and allows taxpayers to request a waiver of the electronic
reporting requirements. This rule is also amended to reflect current policy
concerning the requirements of Government Code, §404.095(c). The amendment
requires certain taxpayers to transfer electronically all payments in certain
categories.
This amendment also clarifies the time limitation for filing information
on the electronic data interchange system to comply with §15.11 of this
title (relating to Determination of Settlement Day).
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no significant
fiscal impact on the state or units of local government.
Mr. LeBas also has determined that for each year of the first five years
the rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be in providing taxpayers with additional information regarding
their tax responsibilities. This rule is adopted under the Tax Code, Title
2, and does not require a statement of fiscal implications for small businesses.
There is no significant anticipated economic cost to individuals who are required
to comply with the proposed rule.
Comments on the proposal may be submitted to Bryant K. Lomax, Manager,
Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.
This amendment is proposed under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
the Tax Code, Title 2.
The amendment implements Tax Code, §111.0625 and §111.0626.
§3.9.Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers.
(a)
Electronic filing of returns and reports. The comptroller
may authorize a taxpayer to file any report or return required to be filed
with the comptroller under [
(1)
the
[
(2)
the
[
(b)
Electronic transfer of certain payments by certain taxpayers.
(1)
For payments that are due before January
1, 2002, the comptroller, pursuant to
[
(2)
For payments that are due on
or after January 1, 2002, the comptroller, pursuant to Tax Code, §111.0625,
shall require taxpayers who have paid the comptroller a total of $100,000
or more in a single category of payments or taxes during the preceding state
fiscal year to transfer all payment amounts in that category of payments or
taxes to the comptroller by means of electronic funds transfer.
(c)
Electronic filing of reports by certain
taxpayers. Pursuant to Tax Code, §111.0626, taxpayers who are required
by Tax Code, §111.0625, to use electronic funds transfer for tax payments
that are made under Tax Code, Chapters 151, 201, 202, and the International
Fuel Tax Agreement must also file report data electronically. This requirement
applies to report data that is due on or after January 1, 2002.
(d)
[
(1)
Pursuant to §15.11 of
this title (relating to Determination of Settlement Day), a person who enters
payment information into the electronic fund transfer (EFT) system may choose
to either accept the settlement day that the EFT system offers or enter a
settlement day up to 30 days in the future. The EFT system will offer the
business day following the day on which payment information is entered into
the EFT system, provided that the information is entered by 6:00 p.m. central
time on any day other than a weekend or banking holiday.
(2)
A person who files combined
tax returns and makes payments through the electronic data interchange (EDI)
system must enter the payment information into the EDI system by 2:30 p.m.
central time to meet the 6:00 p.m. central time requirement that is noted
in paragraph (1) of this subsection.
(e)
[
(f)
A taxpayer who is required
to electronically file report data may submit a written request to the comptroller
for a waiver of the requirement.
(g)
Pursuant to Tax Code, §111.063,
the comptroller may impose a penalty of 5.0% of the tax due for failure to
electronically file a report under Tax Code, §111.0626.
(h)
[
(1)
A person who is otherwise required to pay taxes by means
of electronic funds transfer may make protested payments by other means, including
cash, check, or money order. This
exception to the electronic funds transfer
requirement is allowed
[
(2)
A person may submit a protested tax payment by means
of electronic funds transfer if the written statement is submitted in compliance
with the requirements
[
(A)
A person may submit a protest payment by
means of electronic funds transfer only if:
(i)
[
(ii)
[
(iii)
[
(iv)
[
(B)
The failure of a taxpayer to
submit a written statement in compliance with subparagraph (A) of this paragraph
means the tax payment that the taxpayer made is not considered to be a protest
tax payment as provided by Tax Code, §112.051.
(C)
If a person submits multiple
written statements of protest that relate to the same electronic payment,
then only the first statement that the comptroller actually receives is considered
the written protest for purposes of Tax Code, §112.051.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of
the Secretary of State on February 11, 2002.
TRD-200200848
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Earliest possible date of adoption: March 24, 2002
For further information, please call: (512) 463-3699
the
] Tax Code, Title 2, [
except
those required to be filed under the Tax Code, Chapter 211,
] by means
of electronic transmission under the following circumstances
:
[
.
]
The
] taxpayer or its authorized
agent
has
[
shall first have
] entered into a written agreement
with the comptroller
that permits the taxpayer to use the electronic
[
permitting such a
] method of filing returns and reports.
The signature of the taxpayer or its authorized agent on the written agreement
into which the parties have
[
entered into
]for this purpose
shall be deemed to appear on each report or return
that is
filed
electronically with the comptroller as if actually included on
the report
or return; and
[
it.
]
The
] method of electronic transmission
of each [
such
] return
or
[
and
] report shall
be made in a manner compatible with the comptroller's equipment and facilities.
Pursuant to the provisions
of the
] Government Code, §404.095(c), [
the comptroller
]
shall require persons who have paid the comptroller a total of $250,000 or
more in a single category of payments or taxes during the preceding state
fiscal year to transfer
all
payment amounts [
of $10,000 or
more
] in that category of payments or taxes to the comptroller by means
of electronic funds transfer.
(c)
] Applicability of the state
treasurer's administrative rules. The administrative rules of the former state
treasurer's office on electronic funds transfer, §§15.2, 15.4-15.15,
15.17, and 16.1 of this title (relating to
Penalties, Protested Tax Payments,
State Agency Rules Requirements, Applicability Determination and Notification
Procedures, Voluntary Payments by Electronic Funds Transfer,
Payor Information,
Means of Electronic Funds Transfer,
Transmission of Payment Information,
Determination of Settlement Day,
[
Methods of Communication to the
Data Collection Center, Payor Information, Communication of Payment Information
to the Data Collection Center,
] Transfer of Funds to the Treasury,
Backup
[
Alternate
] Procedures,
Late Payments,
[
Credit of Payment,
] Proof of Payment,
Effective Date,
[
Errors in Transmission, Notification,
] and Adoption by Reference), shall
be applicable to all such payments to the comptroller.
(d)
] Notification of affected persons.
The comptroller shall notify
taxpayers who are affected by this section
[
the persons to whom this section applies
] no less than 60
days before the first
required electronic transmittal of report data
or
payment[
is to be made pursuant to it
].
(e)
] Protest payments by electronic
funds transfer. Protested tax payments made under [
the
] Tax Code, §112.051,
must be accompanied by a written statement that fully and in detail sets out
each reason for recovery of the payment and
are not required to be submitted
by [
means of
]electronic funds transfer.
exclusion applies only
] if a written
statement of protest accompanies the non-electronic payment.
Subject to the guidelines
] set out
in
subparagraph (A) of
this paragraph
.
[
, a person
may submit a protested tax payment by means of electronic funds transfer.
If a person submits multiple written statements of protest related to the
same electronic payment, only the first statement actually received by the
comptroller will be considered the written protest for purposes of the Tax
Code, §112.051. A person may submit a protested tax payment by means
of electronic funds transfer only if:
]
(A)
] a written statement of protest
is delivered by facsimile transmission or hand- delivery actually received
at one of the comptroller's offices in Austin, Texas;
(B)
] the written statement of protest
is delivered to the comptroller within 24 hours before or after the electronic
transfer of the payment;
(C)
] the written statement of
protest identifies the date of electronic payment, the taxpayer number under
which the electronic payment was or will be submitted, and the amount paid
under protest; and
(D)
] the electronic payment is
specifically identified as a protest payment by the method, if any (such as
a special transaction code or accompanying electronic message), that the comptroller
may designate as appropriate to the method by which the person transferred
the funds electronically.
Subchapter L. MOTOR FUEL TAX