ABOUT THE TEXAS COMPTROLLER
The Texas Comptroller of Public Accounts
Texas has no personal income tax, but the Comptroller administers the state taxes that most often create disputes for businesses — and we handle those disputes too.
The Texas Comptroller of Public Accounts is the state agency responsible for administering and collecting most Texas state taxes. While Texas has no personal income tax, businesses operating in the state face sales and use tax, franchise (margin) tax, and a range of other state taxes. When the Comptroller audits a business or assesses additional tax, the stakes can be just as high as a federal IRS matter — and the rules are very different. We represent taxpayers in audits, hearings, and refund claims before the Comptroller.
Taxes the Comptroller Administers
Sales & Use Tax
The most commonly audited Texas tax. Disputes often involve whether transactions were taxable, the validity of resale or exemption certificates, and use tax on out-of-state purchases.
Franchise (Margin) Tax
Imposed on most entities doing business in Texas. Common issues include apportionment, the cost-of-goods-sold and compensation deductions, and combined-group reporting.
Mixed Beverage Taxes
Bars, restaurants, and caterers face both the mixed beverage gross receipts tax and the sales tax, a frequent audit target.
Other State Taxes
The Comptroller also administers motor fuels, hotel occupancy, and various excise taxes, each with its own audit and appeal procedures.
How a Texas Comptroller Dispute Unfolds
The Audit
Most disputes begin with a Comptroller audit. An auditor reviews your records, often using sampling and projection methods, and issues a proposed assessment. How the audit is handled — including how sampling is negotiated and what documentation is provided — frequently determines the size of the final bill.
Redetermination Hearing
If you disagree with the audit results, you can request a redetermination. The Comptroller often refers contested cases to the State Office of Administrative Hearings (SOAH), where an administrative law judge reviews the facts and evidence and issues a proposed decision. These hearings are formal, and presentation of the evidence matters.
Refund Claims
If you have overpaid Texas tax, you can file a refund claim. Denied refund claims carry their own appeal rights, including a refund hearing before the Comptroller.
Why These Cases Are Different From IRS Matters
State tax controversies follow their own statutes, deadlines, and procedures that differ sharply from federal practice. Sampling disputes, exemption-certificate rules, and the margin-tax computation have no federal equivalent. An attorney who handles both IRS and Texas Comptroller matters can spot issues that a federal-only or generalist practitioner may miss.
We Handle Texas Comptroller Disputes
Our firm represents Texas businesses in Comptroller audits, redetermination hearings, SOAH proceedings, and refund claims. We work to limit assessments during the audit, build the record needed to prevail on appeal, and resolve matters efficiently so you can get back to running your business.
Talk to a Dallas Tax Attorney
Schedule a free consultation. We will listen, ask the right questions, and tell you honestly how we can help.