Introduction
Missed a Texas Franchise Tax deadline? Filed late or made a payment error?
Good news: Texas offers a Penalty Relief Program, and in 2025, you can request waivers entirely online.
This guide walks you through the process to reduce or eliminate penalties—especially helpful for small businesses, startups, and growing SaaS firms.
Texas Code References
- Texas Tax Code §111.103 – Penalty waiver discretion
- Texas Administrative Code §3.5 – Penalty waiver procedures
- Texas Comptroller eSystems Portal – Online waiver submission
Who Qualifies for Penalty Relief?
You may qualify if:
- Your entity has a clean compliance history
- The issue was due to reasonable cause, not negligence
- You request the waiver within 30 days of receiving the notice
Typical eligible reasons:
- Illness or death in leadership
- Natural disaster impact
- Technical error in payment platform
- First-time error by a new business
Example: Franchise Tax Late Payment
Example: StartBox, a Dallas-based LLC, missed the May 15 Franchise Tax deadline by 10 days.
- Penalty assessed: $2,000
- Filed a waiver online citing CPA illness and upload delays
Outcome: Full penalty waived within 14 days of submission.
Step-by-Step: Requesting a Waiver Online
- Log into Texas Comptroller eSystems
https://comptroller.texas.gov/taxes/franchise/ - Select ‘WebFile’ for Franchise Tax
Choose the correct business entity and report year. - Click ‘Request Penalty Waiver’
Available after assessment appears on your dashboard. - Explain Your Reason
Use factual, specific language—include dates, parties affected, and proof if available. - Track Submission Status
Log back in periodically or watch for email updates.
Conclusion
Mistakes happen—but penalties don’t have to stick. Texas offers a fair, fast process to request penalty relief.
If you qualify, act within 30 days, document your case, and follow the steps above.
Call to Action
Need help preparing your penalty waiver request?
Book a consultation with Anshul Goyal, CPA, EA, FCA to:
- Draft a strong, clear request
- Organize supporting documentation
- Monitor and respond to Comptroller feedback
One click can save you thousands—get your waiver right.
https://calendly.com/anshulcpa/
About Our CPA
Anshul Goyal, CPA, EA, FCA
Anshul brings 15+ years of U.S. and international tax experience. He specializes in helping online sellers, foreign founders, and U.S. residents with IRS and multi-state compliance. Known for his deep knowledge in Shopify and Amazon seller tax strategy, Anshul has helped hundreds of entrepreneurs minimize taxes and scale legally.
Disclaimer
This blog is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified tax professional regarding your individual tax situation.
Top 5 High-Searched FAQs (2025)
1. How do I get a penalty waived in Texas?
Use the online Comptroller portal to submit a waiver request.
2. What reasons qualify for a waiver?
First-time error, technical issues, natural disasters, illness, etc.
3. Can I appeal if denied?
Yes, you may escalate with additional documentation.
4. How long does it take to process a waiver?
Typically 10–30 days depending on case complexity.
5. Do I need a CPA to file a waiver?
Not required, but a CPA can strengthen your submission.