Texas § TX.171.212 - REPORT OF CHANGES TO FEDERAL INCOME TAX RETURN

§ TX.171.212. REPORT OF CHANGES TO FEDERAL INCOME TAX RETURN

REPORT OF CHANGES TO FEDERAL INCOME TAX RETURN. (a) In this subsection, "qualified research expense" has the meaning assigned by Section 171.9202 . A taxable entity must file an amended report under this chapter if: (1) the taxable margin of the taxable entity or the amount of qualified research expenses incurred by the taxable entity is changed as the result of an audit or other adjustment by the Internal Revenue Service or another competent authority; or (2) the taxable entity files an amended federal income tax return or other return that changes the taxable margin of the taxable entity or the amount of qualified research expenses incurred by the taxable entity. (b) The taxable entity shall file the amended report under Subsection (a)(1) not later than the 120th day after the date the revenue agent's report or other adjustment is final. For purposes of this subsection, a revenue agent's report or other adjustment is final on the date on which all administrative appeals with the Internal Revenue Service or other competent authority have been exhausted or waived. (c) The taxable entity shall file the amended report under Subsection (a)(2) not later than the 120th day after the date the taxable entity files the amended federal income tax return or other return. For purposes of this subsection, a taxable entity is considered to have filed an amended federal income tax return if the taxable entity is a member of an affiliated group during a period in which an amended consolidated federal income tax report is filed. (d) If a taxable entity fails to comply with this section, the taxable entity is liable for a penalty of 10 percent of the tax that should have been reported under this section and that had not previously been reported to the comptroller. The penalty prescribed by this subsection is in addition to any other penalty provided by law. Added by Acts 1997, 75th Leg., ch. 1185, Sec. 14. Amended by: Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3 ), Sec. 7, eff. January 1, 2008. Acts 2025, 89th Leg., R.S., Ch. 1183 (S.B. 2206 ), Sec. 2, eff. January 1, 2026.