Franchise-Tax Extensions: Form 05-164 Walk-Through

Franchise-Tax Extensions

If you need extra time to prepare your Texas franchise-tax report, Form 05-164 gives you a six-month extension—from May 15 to November 15—to file. Note, however, that an extension does not extend your payment deadline. You must still remit at least 90 percent of your estimated tax liability by the original due date along with your extension request. In this guide, we’ll cover the legal basis, required forms, a detailed example, and a step-by-step walk-through to ensure your extension is approved.

Applicable Tax Authority & Code References

• Grant of Extension: The Comptroller “shall grant an extension of time to a taxable entity that is not required by rule to make its tax payments by electronic funds transfer” upon timely request. Tex. Tax Code § 171.202.
• Extension Request Deadline: Must be submitted or postmarked on or before May 15 (or next business day) of the report year. Comptroller guidance confirms Form 05-164 is accepted if timely.
• Minimum Payment Requirement: Extension requests must include at least 90 percent of the tax estimated to be due with the report.
• Electronic Funds Transfer (EFT): Entities required to pay by EFT file their extension via TEXNET using payment code 13080.

Forms Required for an Extension

• Form 05-164, Texas Franchise Tax Extension Request Annual or Final
• Form 05-165, Extension Affiliate List (for combined-group members)
• Payment Voucher:
  • EFT filers: Use TEXNET with code 13080 and remit ≥ 90 percent of estimated tax.
  • Non-EFT filers: Attach Form 05-170 and a check for ≥ 90 percent of estimated tax.

Remember: Filing an extension request does not defer payment of tax. Payments remain due by the original deadline (May 15).

Detailed Example

Alpha Innovations LLC expects a 2024 franchise-tax liability of $50,000 and does not pay by EFT.

1. Estimate Tax: $50,000.
2. Compute Minimum Extension Payment: 90 percent × $50,000 = $45,000.
3. Download Forms:
   • Form 05-164 (Annual Extension Request).
   • Form 05-170 (Payment Voucher).
4. Complete Form 05-164:
   • Taxpayer Name & No.: Alpha Innovations LLC / 123456789
   • Report Year: 2024 Annual Report
   • Amount Paid: $45,000
   • Check “Annual” Extension box.
5. Attach Payment: Prepare a check for $45,000 payable to Texas Comptroller, note taxpayer number and report year.
6. Mail by May 15:
7. Texas Comptroller of Public Accounts  
8. P.O. Box 149348  
9. Austin, TX 78714-9348  
10. File Affiliate List (if applicable): If Alpha is part of a combined group, complete Form 05-165 listing each affiliate’s Texas taxpayer number and % ownership.
11. Confirmation: Retain USPS certified-mail receipt and a copy of all forms.

Once approved, Alpha Innovations LLC has until November 15, 2025 to submit its full franchise-tax report (Form 05-158 or 05-158EZ) and any remaining tax balance.

Step-by-Step Compliance Guide

1. Decide If You Need an Extension
   • If you cannot accurately complete your franchise-tax report by May 15, plan for an extension.
2. Estimate Your Tax Liability
   • Base your estimate on your chosen margin method and the applicable tax rate.
3. Calculate Minimum Payment
   • Multiply estimated tax × 90 percent.
4. Gather Required Forms
   • Form 05-164 (extension request)
   • Form 05-165 (affiliate list, if combined group)
   • Form 05-170 (payment voucher, if non-EFT filer)
5. Complete & Review
   • Ensure taxpayer name, number, year, and payment amount are correct.
6. Submit by May 15
   • EFT filers: File via TEXNET, pay code 13080.
   • Others: Mail forms and check to P.O. Box 149348, Austin, TX 78714-9348.
7. Retain Proof of Filing & Payment
   • Save WebFile/TEXNET confirmation or USPS certified-mail receipt.
8. File Final Report by November 15
   • Use the extra time to gather accurate data; file Form 05-158 (or 05-158EZ) and pay any remaining balance.

Conclusion

Form 05-164 offers a straightforward way to secure six additional months to prepare your Texas franchise-tax report. By remitting at least 90 percent of your estimated tax and filing the extension request by May 15, you avoid late-filing penalties and gain valuable time to finalize your numbers.

Schedule a Meeting to ensure your extension is properly filed and to plan your full franchise-tax reporting strategy.

About Our CPA

Anshul Goyal, CPA, EA, FCA, is a licensed Certified Public Accountant in the United States and admitted to practice before the IRS as an Enrolled Agent. He represents clients in tax litigation, specializes in cross-border compliance for U.S. businesses and Indian nationals, and delivers tailored tax-planning strategies.

Disclaimer

This blog provides general informational guidance and does not constitute tax, legal, or accounting advice. Consult a qualified professional regarding your specific circumstances before taking action. Anshul Goyal, CPA, EA, FCA, and Kewal Krishan & Co. disclaim liability for actions taken based on this content.

FAQs

1. What is Form 05-164?
The official Texas Franchise Tax Extension Request form to obtain a six-month filing extension.

2. How much do I have to pay with my extension?
At least 90 percent of your estimated franchise-tax liability by May 15.

3. Can I file the extension electronically?
Yes—EFT-required entities use TEXNET with payment code 13080; others can use WebFile or mail.

4. Does an extension defer payment?
No. The extension only defers your filing deadline to November 15; payment remains due May 15.

5. What if I’m part of a combined group?
Complete Form 05-165 to list affiliates as part of your extension request.