The redetermination process provides your primary administrative remedy for disputing franchise tax assessments. A successful redetermination can eliminate or substantially reduce your liability without the time and expense of litigation.
Timing is critical. You must file your motion for redetermination within 60 days of the date on your notice of determination. This deadline cannot be extended, and missing it generally forfeits your right to administrative dispute resolution.
Your motion should clearly identify what you’re disputing. Specify the tax periods, the assessed amounts, and exactly why the assessment is wrong. Vague objections like “I disagree with the assessment” aren’t effective. You need to pinpoint the specific errors.
Include the legal basis for your position. If the Comptroller misapplied a statute or regulation, identify the correct interpretation. If administrative rules support your position, cite them. Tax law can be technical, and legal arguments carry weight in redetermination proceedings.
Present factual support for your claims. Attach documents that demonstrate your position. If you’re disputing a revenue calculation, provide records showing actual revenue. If you’re challenging apportionment, document where your activities occurred. Facts supported by documentation are more persuasive than unsupported assertions.
Request a hearing if you want to present your case in person or by telephone. Hearings allow you to explain complex issues, respond to questions, and address concerns the reviewer might have. Not every case requires a hearing, but complex disputes often benefit from the opportunity to discuss the issues directly.
Respond to requests for additional information promptly and completely. The hearing officer may have questions or need additional documentation. Delays in responding can hold up your case and suggest you don’t have strong support for your position.
Evaluate the decision carefully when it arrives. If the redetermination resolves your dispute favorably, confirm that the resolution is properly implemented. If the decision is unfavorable, you’ll need to decide whether to accept it, pay and seek a refund, or escalate to SOAH or court.
For assistance with a franchise tax redetermination, schedule a consultation to discuss your case.
