Key Takeaways

  • Texas does not automatically accept a federal extension for corporations. A separate state-level extension must be filed for franchise taxes.
  • Corporations must use Form 05-164 (Request for Extension of Time to File Franchise Tax Report) or file electronically through Webfile or TEXNET.
  • A federal income tax extension (Form 7004) can extend the federal filing deadline, but Texas requires timely franchise tax payments with the extension request to avoid penalties.
  • First extension: moves the due date from May 15 to August 15 if 90% of the tax is paid by May 15.
  • Second extension: available until November 15, but only for EFT payors who timely paid using TEXNET.
  • Extensions only extend the time to file the report, not the time to pay tax owed.

A Texas corporate income tax extension is available for companies intending to file their taxes late. Corporate tax returns in Texas are due on March 15th, so if corporate income tax returns are going to be filed after that date, it's necessary to file for an extension. If you're unsure of how to handle your filing information, you may want to check with your tax advisor or an attorney.

Required Tax Forms

There are a number of forms that are required for federal taxes. These include:

  • Form 1099: Form 1099 is a form that must be filed annually. It's used to report non-employee compensation that has been paid out during the year.
  • S-Corporation Form 1120S: This form is for any business entity that's treated as an S-corporation, whether it generated a profit or not.
  • C-Corporation Form 1120: This form is for all entities that are taxed as C-Corporations, whether the company made a profit, loss, or broke even.
  • C-Corporation Fiscal Year End: Any entity that's taxed as a C-Corporation, whether it's profitable or not, and has a fiscal year that ends anytime other than between December 31 and June 30.
  • C-Corporation Fiscal Year June 30 Form 1120: This form is used for a C-Corporation that has a fiscal year end of June 30, and it is used whether the entity was profitable or not.
  • Forms 1042 and 1042S: These forms are used to report the withholdings of U.S. source income paid to foreign persons.
  • Forms 3921 and 3922: These forms are required when an employee exercises incentive stock options.
  • Form 1065 for partnerships: This form is to be used by entities that are operating as partnerships for tax purposes. It is used whether the partnership earned a profit or not.
  • Foreign bank and financial accounts (FBAR), FinCEN Report number 114: This is necessary if a business entity or individual has either signature authority over or financial interest in a foreign financial account. This form is filed annually, and it is required if the foreign account goes over specific thresholds.

Tax Deadlines in Texas

It is important to file tax forms in a timely manner to avoid penalties and additional fees. Check the forms or consult with your tax advisor to confirm exact due dates. Though this is not a comprehensive list of all tax deadlines, some deadlines to be aware of include:

  • Mid-January: Form 1040-ES. This is the form that must accompany your individual estimated tax payment.
  • Mid-February: Forms 940 and 941 must be filed if all the payments you were required to pay were submitted on time.
  • Late February: Forms 1097, 1098, 1096, 3921, 3922, and W-2G are due at the end of February. Either 1095-C or 1095C, which relate to health care coverage, is also due.
  • Mid-March: S-Corp tax returns, Forms 1120S, 7004, partnership tax returns, Form 1065, and Form 7003 are due.
  • Mid-March: Requests for extensions: Forms 1120, 1120S, and 2553 for S-Corps are due.
  • Early April: Forms W-2, 1097, W-2G, 1094-B and C, 1098, 1095 B and C are due.
  • Mid-April: Form 1040 for individual tax returns and form 4868 for automatic six-month renewal are due.
  • Mid-April: Requests for extensions for corporate income tax form 1120 and form 7004 are due.
  • Mid-April: Some other forms that are due in mid-April include Schedule H to be filed along with your Form 1040 if your household employed someone who was paid over $2,000, estate and trust tax returns, and 1040-ES payment for your estimated income tax for the first quarter of the year for both individuals and corporations.
  • End of April; Forms 941 and TWC form C-3 are due.
  • Early May: Form 941 for the first quarter of the year is due if all payments were deposited on time.

Texas franchise tax reports, public information reports, and ownership reports are due in mid-May. Automatic extensions of filing time requests are also due in mid-May. EFT payors of the extended Texas franchise tax report have a different due date than others filing the franchise tax forms. EFT payors can move the filing date back to mid-August by making a payment on time using TEXNET or WebFile.

Texas Franchise Tax Extensions

When asking “does Texas accept federal extension for corporations,” it’s important to understand that Texas does not automatically honor a federal extension. Corporations must file a separate extension request with the Texas Comptroller for franchise tax purposes.

To request an extension, businesses generally use Form 05-164 (Request for Extension of Time to File Franchise Tax Report) or file electronically through the Comptroller’s Webfile or TEXNET systems..

  • First Extension: Extends the May 15 due date to August 15, provided the entity pays at least 90% of the tax due with the extension request.
  • Second Extension: Available for Electronic Funds Transfer (EFT) payors only, extending the due date to November 15 if the August payment was made on time.

Keep in mind that an extension in Texas only gives you extra time to file the report, not extra time to pay. Any unpaid taxes after the May deadline may accrue penalties and interest. A federal Form 7004 does not cover state obligations; you must separately ensure Texas franchise tax compliance

Frequently Asked Questions

1. Does Texas accept a federal extension for corporations?

No. Texas does not automatically accept a federal extension. A separate Texas extension request is required for franchise tax filings.

2. Which form is used to request a Texas corporate tax extension?

Corporations use Form 05-164 or file electronically through Webfile or TEXNET.

3. How long is the Texas franchise tax extension?

The first extension moves the deadline from May 15 to August 15. A second extension (for EFT payors) extends it to November 15.

4. Does a Texas extension cover tax payments?

No. Extensions only extend the time to file, not the time to pay. At least 90% of the tax must be paid by May 15 to qualify.

5. Can a federal Form 7004 be used for Texas franchise tax?

No. Form 7004 applies only to federal taxes. Texas requires its own extension process for corporate franchise taxes.

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