$50 “Late Report” Fine
If you’ve filed your Texas franchise-tax report late—even if no tax is due—you automatically incur a $50 late-filing fee per report. Fortunately, Texas law allows you to request a waiver of that flat fee (and any related interest or penalties) with a single letter or form. In this post, we’ll explain the statutory basis, show you exactly what to send, and provide a sample letter to help you get that $50 fine abated.
Applicable Tax Authority & Code References
- Flat Late-Filing Fee: A $50 penalty applies to any franchise-tax report filed after the due date, regardless of tax due (Texas Comptroller).
- Waiver Right: Under the Texas Comptroller’s Taxpayer Bill of Rights, you may request a waiver of penalties and interest for late reports or payments (Texas Comptroller).
- Waiver Criteria: The waiver process follows Texas Administrative Code Rule 3.5, which considers factors such as timely filing of other reports, payment of underlying tax, and reasonable cause (Texas Comptroller).
- Forms for Waiver:
- Form 89-224: Request for Waiver of Penalty for Late Report and/or Payment (Texas Comptroller).
- Form 89-225: Request for Waiver of Penalty for Failure to File and/or Pay Electronically (Texas Comptroller).
What to Send: Form or Letter
You can either:
- Complete Form 89-224 (PDF) with all required fields and mail or upload it via WebFile; or
- Write a custom waiver letter containing exactly the same information as Form 89-224.
Required Information (whether on the form or in your letter) (TaxCure):
- Taxpayer Details: Name, Texas taxpayer number, mailing address.
- Reporting Period: Type of report (e.g., annual franchise tax), period end date, and date report was due.
- Penalty Amount: $50 per late report.
- Reason for Waiver: A brief, factual explanation of why the report was late (e.g., system outage, illness).
- Corrective Steps: What you’ve done to ensure timely filing in the future (e.g., calendar reminders, additional staffing).
Detailed Example
SolarGlow LLC failed to file its 2024 franchise-tax report on May 15, 2025, and received a $50 late-filing notice. On May 25, they:
- Downloaded Form 89-224 from the Comptroller’s website.
- Completed all fields, noting:
- Taxpayer No.: 123456789
- Report Type: 2024 Franchise Tax Report
- Date Due: May 15, 2025
- Penalty Amount: $50
- Reason: “Unexpected server outage prevented timely WebFile submission.”
- Corrective Step: “Implemented dual-server hosting and calendar alerts for next year.”
- Signed and mailed the form to:
- Texas Comptroller of Public Accounts
- Attention: Waiver Requests
- P.O. Box 13528
- Austin, TX 78711-3528
- Result: Within 30 days, the Comptroller issued a notice granting the waiver and refunding any paid penalty.
Sample Waiver Letter
SolarGlow LLC
500 Sunrise Drive
Austin, TX 78701
Texas Taxpayer No.: 123456789
Date: May 25, 2025
To:
Waiver Requests
Texas Comptroller of Public Accounts
P.O. Box 13528
Austin, TX 78711-3528
Re: Request for Waiver of $50 Late-Filing Penalty
Reporting Period: 2024 Franchise-Tax Report (due May 15, 2025)
Penalty Amount: $50
Reason for Late Filing: On May 15, the firm’s primary tax-filing server experienced an unexpected outage, preventing our WebFile submission. Once the issue was resolved on May 16, we completed and submitted the report promptly.
Preventive Measures: We have implemented redundant hosting and established automated calendar reminders to ensure timely filings going forward.
Thank you for considering this request under Rule 3.5 of the Texas Administrative Code and the Taxpayer Bill of Rights.
Sincerely,
Anshul Goyal, CPA, EA, FCA
Authorized Representative for SolarGlow LLC
Step-by-Step Guide to Abatement
- Confirm Eligibility
- Ensure all other tax reports are filed and underlying tax is paid (Texas Comptroller).
- Verify you haven’t received another waiver in the past two years.
- Gather Details
- Taxpayer number, report type, period, due date, and penalty amount.
- Draft Your Request
- Use Form 89-224 or the sample letter above.
- Be concise: state the cause, corrective steps, and period.
- Submit
- By Mail: Send to P.O. Box 13528, Austin, TX 78711-3528.
- Online: Upload via WebFile (login, navigate to Waiver Requests).
- Follow Up
- If you don’t hear back in 30 days, contact the Comptroller at 800-531-5441, ext. 3-4560.
- Record Keeping
- Retain copies of your submission and any confirmation for your records.
Conclusion
Abating a $50 late-filing fee is straightforward: submit Form 89-224 or a concise waiver letter that includes your taxpayer details, the late report information, a valid cause, and preventive measures. Acting quickly ensures your request is reviewed under Rule 3.5 and the Taxpayer Bill of Rights, often resulting in a full waiver.
Schedule a Meeting to review your waiver request or discuss broader Texas franchise-tax compliance strategies.
About Our CPA
Anshul Goyal, CPA, EA, FCA, is a licensed Certified Public Accountant in the United States and an IRS-admitted Enrolled Agent. He represents clients in tax litigation, specializes in cross-border compliance, and delivers proactive tax planning for U.S. businesses and Indian nationals.
Disclaimer
his blog provides general informational guidance and does not constitute tax, legal, or accounting advice. Consult a qualified professional regarding your specific situation before taking action. Anshul Goyal, CPA, EA, FCA, and Kewal Krishan & Co. assume no liability for actions taken based on this content.
FAQs
1. Can I request a waiver for multiple late-filing penalties?
Yes—up to one annual report, two quarterly reports, or six monthly reports per waiver request (Texas Comptroller).
2. Do I need to pay the $50 fee first?
No. You may request a waiver without prepaying the penalty; if denied, you’ll owe the fee or face collection (Texas Comptroller).
3. What qualifies as “reasonable cause”?
System outages, serious illness, natural disasters, or other unforeseen events that directly prevented timely filing (TaxCure).
4. How soon will I get a waiver decision?
Typically within 30 days of receipt by the Comptroller’s Waiver Requests unit.
5. Can I appeal a denied waiver?
Yes. You may request a redetermination hearing in writing within 10 days of denial (Texas Comptroller).