Texas Comptroller Offers Short-Term Sales Tax Compliance Assistance for Businesses Impacted by COVID-19

States and localities across the nation continue to issue guidance to try to accommodate and alleviate the strain on businesses during the COVID-19 crisis, and Texas is no exception. The Texas Comptroller of Public Accounts recently issued an emergency alert offering guidance and assistance for businesses who were unable to remit their February sales tax collections by the March 20, 2020, due date. For businesses in this situation, the Comptroller is offering assistance in the form of short-term payment agreements and, in most circumstances, waivers of penalties and interest that would normally accrue.

Under Texas law, businesses are required to collect sales tax on all taxable sales, hold the funds in trust and remit the sales tax collections to the Texas Comptroller, typically by the 20th day of the month following collection. During these unprecedented times, however, businesses may find themselves unable to comply with the remittance requirements. The Comptroller’s recent alert is limited to February sales tax collections that were due by March 20, 2020; however, we will continue to monitor these developments for potential extension of this relief to subsequent months and other sales tax relief measures the Comptroller may issue during the continuing economic crisis.

Clark Hill’s tax group is available to assist with questions affected taxpayers may have regarding this issue. 

For more information, please view the Texas Comptroller’s alert here.