Texas § TX.112.1511 - SUIT TO DISPUTE RESULTS OF MANAGED AUDIT

§ TX.112.1511. SUIT TO DISPUTE RESULTS OF MANAGED AUDIT

SUIT TO DISPUTE RESULTS OF MANAGED AUDIT. (a) A person may sue the comptroller to dispute the results of a managed audit conducted under Section 151.0231 or 201.3021 if the person: (1) has been issued a letter by the comptroller notifying the person of the results of the managed audit; and (2) is authorized to bring the suit under Section 111.0091 (b). (b) The suit must be brought against both the comptroller and the attorney general and must be filed in a district court. (c) The suit must be filed during the time provided by Section 111.0091 (b) or it is barred. (d) The amounts of the disputed underpayments or overpayments contained in the report of the managed audit results must be set out in the original petition. A copy of the notice of intent filed under Section 111.0091 (a) must be attached to the original petition filed with the court and to the copies of the original petition served on the comptroller and the attorney general. (e) A person may not intervene in the suit. (f) A taxpayer shall produce sufficient records and supporting documentation appropriate to the tax or fee for the transactions in question to substantiate and enable verification of a taxpayer's claim relating to the amount of the tax, penalty, or interest to be assessed, collected, or refunded, as required by Section 111.0041 , including the amounts of the disputed underpayments or overpayments contained in the report of the managed audit results. (g) After the comptroller has been timely served in a suit that complies with this section, the comptroller and the attorney general: (1) are enjoined from collecting disputed underpayments identified in Section 111.0091 (a)(4) from the person bringing the suit during the pendency of the suit; and (2) are not enjoined from: (A) asserting tax liens; or (B) as an alternative to asserting tax liens, requiring the person to provide security: (i) in an amount sufficient to secure payment of the entire disputed amount, including penalties and accrued interest, that is the subject of the suit; and (ii) in the form of a cash deposit filed with the comptroller or paid into the registry of the court, a surety bond, a letter of credit, or another form of guarantee. (h) Damages may be awarded under Chapter 65 , Civil Practice and Remedies Code, if the court determines that all or part of the enjoined collection amounts under Subsection (g) were disputed solely for delay. Added by Acts 2025, 89th Leg., R.S., Ch. 138 (S.B. 266 ), Sec. 7, eff. May 24, 2025.