In November 2024, the Texas Comptroller released publication 96-1253, a comprehensive guide detailing the rights and remedies available to taxpayers who disagree with the findings of a tax audit, examination, or refund claim. The publication provides clarity on the options taxpayers may pursue before and after receiving formal notification of tax determinations. The publication also reaffirms the Comptroller’s commitment to taxpayer fairness, transparency, and accountability through the Texas Bill of Rights which includes the rights to fair treatment, privacy, clear guidance, representation, and access to resolution mechanisms.
Before receiving formal notification, the Comptroller encourages taxpayers to collaborate with the auditors and seek early resolution through several informal mechanisms such as:
Upon receipt of formal notification such as Notification of Audit Results or Notification of Exam Results, taxpayers have the following options:
Taxpayers receiving a refund denial letter have two primary options:
It is important to note that under Chapter 111 of the Texas Tax Code, the Comptroller may pursue collection through liens, asset seizure, permit suspension and other enforcement mechanisms if past-due liabilities are not resolved.
The publication serves as a valuable source for understanding and exercising taxpayer’s rights during disputes with the Texas Comptroller. While the guide offers clarity on procedural steps and taxpayer protections, it is not a substitute for legal advice. Taxpayers are encouraged to consult professionals for personalized assistance.
(STAR Publication 96-12533, Contesting Disagreed Audits, Examinations and Refund Denials, Texas Comptroller of Public Accounts, November 2024)