Ladies and Gentlemen:

Our office has begun receiving the first reports to be filed under the revised Texas franchise tax using the new margin calculation. The last day to file a timely report or request an extension is May 15.

Agency staff has been working hard to ensure that:

• all systems are in place to receive and process reports and payments; and
• taxpayers and their representatives are as informed as possible about the new reporting responsibilities.

Our office contacted the Federation of Tax Administrators (FTA) to ensure that the process we followed regarding customer service was consistent with other states that have faced similar tasks. From our discussion with the FTA, we compiled a list of customer service best practices that assisted our implementation efforts, and ultimately provided us with a benchmark for evaluating our own efforts.

Here is an update on our outreach efforts:

• 15 new administrative rules were effective as of Jan. 1, 2008;
• I have spoken about the revised franchise tax 37 times, which includes talks in Austin, Houston, San Antonio, Dallas, Lufkin, College Station and Brownsville;
• 10 live seminars were presented to more than 900 taxpayers and their representatives throughout the state in Fall 2007;
• 12 webinars were conducted in Spring 2008 to more than 4,700 participants;
• franchise tax experts have spoken at more than 20 events since June 2007;
• free CLE and CPE credit is always offered for those attending both live and webinar presentations sponsored by the agency;
• Web site enhancements make information easier to find;
• our Web site, www.window.state.tx.us, now features a database of frequently asked questions that is updated continuously;
• press releases are sent to media outlets throughout the state to advertise our outreach efforts and how we can help; and
• a public service announcement was distributed to media outlets throughout the state to air beginning April 1.

In addition to outreach and informational efforts, we have prioritized our customer service via telephone, e-mail and written correspondence to ensure that taxpayers who are up against deadlines to file reports receive priority service. During the peak filing season for franchise tax, the agency will make over 100 employees available in various capacities as part of their assigned duties to assist taxpayers with their questions, filing and compliance concerns.

Our Tax Assistance Section within our Tax Policy Division has 43 tax analysts trained in franchise tax and staffing the incoming tax toll-free lines. To supplement these full-time phone assistants who are responsible for all tax questions, our Audit Division cross trained 10 auditors to handle franchise tax questions for the week of April 14, our major call volume week. This will bring total available staff to 53 for fielding phone calls during the peak time for franchise tax questions. Other divisions within our agency have also stepped up, providing nearly 40 additional employees to guide taxpayers in online filing while 12 more will be available to answer franchise tax questions via e-mail.

Please note that on April 11 we will mail notices to more than 900,000 taxpayers with instructions about filing and paying any tax that is due. You may receive calls about the mailing. Due to the large volume of inquiries we have been receiving and expect to receive as we get closer to the May 15 filing deadline, we will be challenged to answer questions in a time that meets all taxpayers’ needs. To help you respond to inquiries and help your members, we are attaching to this message a list of information resources.

As leaders in this state, we ask your help to make sure your association members, clients and anyone else you know who is affected by this change in the law are informed about the revisions to the state’s franchise tax.

We also hope to make our Web site access very easy for everyone. Please give us your feedback. We appreciate your assistance.

Sincerely,

Susan Combs
Texas Comptroller of Public Accounts

Revised Texas Franchise Tax-Resources for Answering Questions