Texas HB2577 prohibits notices to taxable entities from stating a specific franchise tax amount due solely from failure to file a report on time.

Texas HB2577 amends the Tax Code to add a new section prohibiting notices sent to taxable entities from stating a specific amount of franchise tax due solely because the entity failed to file a report on time. This change aims to prevent notices from imposing a specific tax amount without proper assessment. The act can take effect immediately if approved by two-thirds of the legislature, otherwise it will take effect on September 1, 2025.

Texas HB2577 prohibits notices to taxable entities from stating a specific franchise tax amount due solely from failure to file a report on time.

Texas HB2577 amends the Tax Code to add a new section prohibiting notices sent to taxable entities from stating a specific amount of franchise tax due solely because the entity failed to file a report on time. This change aims to prevent notices from imposing a specific tax amount without proper assessment. The act can take effect immediately if approved by two-thirds of the legislature, otherwise it will take effect on September 1, 2025.