34 TAC §3.9
The Comptroller of Public Accounts adopts an amendment to §3.9,
concerning electronic filing of returns and reports; electronic transfer of
certain payments by certain taxpayers, with changes to the proposed text as
published in the February 22, 2002, issue of the
Texas Register
(27 TexReg 1281).
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. The 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).
Changes were made to subsection (a)(1) of the proposed rule to add the
word "entered" back into the text of that subsection. This word was inadvertently
deleted in the proposed rule.
No comments were received regarding adoption of the amendment.
This amendment is adopted 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 Tax Code, Title 2, by means of electronic transmission
under the following circumstances:
(1)
the taxpayer or its authorized agent has entered into a
written agreement with the comptroller that permits the taxpayer to use the
electronic 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 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
(2)
the method of electronic transmission of each return or
report shall be made in a manner compatible with the comptroller's equipment
and facilities.
(b)
Electronic transfer of certain payments by certain taxpayers.
(1)
For payments that are due before January 1, 2002, the comptroller,
pursuant to Government Code, §404.095(c), 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
in that category of payments or taxes to the comptroller by means of electronic
funds transfer.
(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)
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, Transfer of Funds to the Treasury, Backup Procedures, Late Payments,
Proof of Payment, Effective Date, and Adoption by Reference), shall be applicable
to all such payments to the comptroller.
(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)
Notification of affected persons. The comptroller shall
notify taxpayers who are affected by this section no less than 60 days before
the first required electronic transmittal of report data or payment.
(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)
Protest payments by electronic funds transfer. Protested
tax payments made under 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 electronic funds transfer.
(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 if a written statement of protest accompanies the non-electronic
payment.
(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 set out in subparagraph (A) of this paragraph.
(A)
A person may submit a protest payment by means of electronic
funds transfer only if:
(i)
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;
(ii)
the written statement of protest is delivered to the comptroller
within 24 hours before or after the electronic transfer of the payment;
(iii)
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
(iv)
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.
(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 adoption
has been reviewed by legal counsel and found to be a valid exercise of the
agency's legal authority.
Filed with the Office of
the Secretary of State on May 7, 2002.
TRD-200202802
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Effective date: May 27, 2002
Proposal publication date: February 22, 2002
For further information, please call: (512) 475-0387