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Franchise Tax Frequently Asked Questions
Extensions
Can a combined group use the 100 percent tax due option in requesting an extension?
Yes, if the combined group was subject to the franchise tax in the previous year, even if members of the combined group have changed.
If a taxable entity was a member of a combined group for the previous franchise tax report but is filing as a separate entity for the current year report, can the entity use the 100 percent tax due option in requesting an extension?
No.
What are the extension requirements for the first annual report?
Annual extension requirements will apply for all annual reports, including the first annual report. On the first annual report, the option to pay 100 percent of the prior year's tax is not available.
Can a taxable entity use the 100% tax due option for requesting an extension if the entity was under the no tax due threshold for the prior year and only filed a Public Information Report (PIR) or Ownership Information Report (OIR)?
Yes, a taxable entity may file a no payment extension on or before the due date of the report and secure a valid extension. For example, if a taxable entity was under the no tax due threshold for report year 2024 and only filed a PIR/OIR, when requesting an extension for report year 2025 the entity can file a no payment extension because the entity did not owe any tax in the prior year.
If a taxable entity is under the no tax due threshold and cannot file their PIR/OIR by the May 15 due date, can the entity file a no payment extension request to extend the due date of the PIR/OIR to Nov. 15?
Yes. A taxable entity may file a no payment extension on or before the due date of the report and secure a valid extension.