The Texas Comptroller of Public Accounts announced on her website the opportunity for businesses to clear up their tax records without any penalty. The Comptroller's Fresh Start tax amnesty period is set for June 12, 2012, through August 17, 2012.

Comptroller Susan Combs said the "amnesty is a chance for businesses to set their tax records straight and save money by not having to pay penalty and interest on tax reports they had failed to file. During the two-month amnesty, businesses can file those missing reports and pay the overdue taxes, or amend and pay previous reports in which they had incorrectly stated a lower amount than was due."

The tax amnesty covers taxes and fees that were originally due before April 1, 2012. The amnesty does not apply to underpaid tax returns (tax that was reported but not paid); assessments already identified by the Comptroller; taxpayers currently under audit or review; taxpayers the Comptroller has already contacted about an audit or possible deficiency; and taxpayers which have signed a settlement agreement or voluntary disclosure agreement prior to June 12, 2012.

The Fresh Start amnesty applies to sales tax, franchise tax and other state or local taxes or fees administered by the Comptroller's office, except Public Utility Commission gross receipts tax assessments. A similar tax amnesty was available in the summer of 2007 and brought in approximately $100 million in unpaid taxes.

Additional information, including answers to frequently asked questions, can be found at www.freshstart.texas.gov.

This alert was prepared by Jasper G. ("Jack") Taylor III (jtaylor@fulbright.com or 713 651 5670), Stephen A. Kuntz (skuntz@fulbright.com or 713 651 5241) and Jay M. Chadha (jchadha@fulbright.com or 713 651 3770) of the firm's Tax Practice Group. If you have any questions or need any assistance related to these or any other tax controversy matters, please contact any of the authors listed above or Charles W. Hall (chall@fulbright.com or 713 651 5268), Richard L. Hunn (rhunn@fulbright.com or 713 651 5293), Kathryn Keneally, Andrius R. Kontrimas (akontrimas@fulbright.com or 713 651 5482), William S. Lee (wlee@fulbright.com or 713 651 5633), and Robert C. Morris (rmorris@fulbright.com or 713 651 8404).