Explore Our Traditional State Tax Consulting Services

Why use State Tax Resources for Texas franchise tax audit assistance?

• Extensive experience analyzing cost of goods sold (COGS) to support eligibility, maximize deductions and defend positions during Texas Comptroller audits

• Deep understanding of Texas apportionment rules including policy changes, sourcing of service revenue, and the audit impact of changes that apply to the audit period

• Strong knowledge of how court cases, Comptroller hearings, and policy updates affect the Texas franchise tax calculation and audit outcomes

• Experience supporting refund positions involving industry-specific revenue exclusions

• Significant experience with combined reporting including affiliate inclusions/exclusions, unitary determinations, and intercompany eliminations

• Expertise in Texas franchise tax refund claims, including identifying overpayments, preparing defensible positions, and managing Comptroller review

• Extensive experience addressing common audit adjustments made by Texas Comptroller auditors - and how to challenge them effectively

• Strong track record resolving audit issues, Independent Audit Reviews (IAR’s) and managing the redetermination process

• Established relationships with Texas tax attorneys for matters requiring legal representation, ensuring seamless referrals when necessary

Texas sales and use tax audits can create significant exposure for businesses, especially when taxability rules, exemptions, and documentation requirements can change and be difficult to understand. State Tax Resources provides experienced, audit‑side guidance to help businesses navigate these reviews with clarity and confidence. With deep knowledge of Texas sales tax rules, sampling methodologies, exemption qualifications, and industry‑specific audit issues, we help clients identify risks, defend positions, and resolve disputes efficiently throughout the audit, IAR, or redetermination process. You can expect the following from us:

• Deep understanding of Texas Comptroller sales tax audits, including sampling methodologies, error‑rate calculations, and projection challenges

• Extensive experience addressing Texas taxability rules for services, mixed transactions, software, SaaS, digital goods, and manufacturing exemptions

• Hands-on experience defending manufacturing, and resale exemption claims, including documentation, qualification analysis, and audit‑ready support

• Expertise identifying overpayments and refund opportunities, including utilities, manufacturing equipment, mixed‑use assets, and direct‑pay permit issues

• Strong background resolving use tax exposure related to procurement processes, fixed‑asset purchases, and multi‑state operations

• Experience challenging improper auditor assumptions, including misapplied taxability positions, incorrect sampling selections, and unfair projection methods

• Significant experience with industry‑specific audit issues, including construction, technology, oil & gas, manufacturing, professional services, and retail

• Proven ability to translate complex Texas sales tax rules into clear, defensible audit positions that withstand Comptroller scrutiny

• Strong track record assisting with redeterminations, Independent Audit Reviews (IARs), and settlement negotiations when disputes escalate

• Established relationships with Texas tax attorneys for matters requiring legal representation, ensuring seamless referrals when necessary

• Comprehensive support for multi-state income and sales/use tax examinations, coordinating strategy across jurisdictions.

• Nexus and apportionment analysis to evaluate and defend sourcing and allocation methodologies.

• Assistance with audit document requests, position papers, computation of proposed liabilities, and negotiation of audit outcomes.

• Coordination with in-state counsel or local advisors when specific state representation is required.

• Systematic review of past tax filings to identify missed credits, overpayments, or incorrect calculations across income, sales/use, and other state taxes.

• Preparation and filing of refund claims, including supporting documentation and calculation workpapers.

• Statute-of-limitations analysis to prioritize recoverable amounts and recommend timing for claims.

• Contingency and fixed-fee arrangements available depending on complexity and recovery potential.

• Targeted tax due diligence for mergers, acquisitions, dispositions, and reorganizations involving state and local tax matters.

• Identification of tax exposures, unfiled returns, audit history, nexus risks, and potential refund opportunities.

• Quantification of contingent liabilities, recommended indemnity structures, and post-closing tax planning steps.

• Integration support with transaction teams to ensure tax findings are reflected in purchase agreements and closing deliverables.

• Expertise on a broad range of state and local taxes including property tax, gross receipts taxes, excise taxes, utility taxes, local business license taxes, and industry-specific levies.

• Compliance reviews, voluntary disclosures, and amnesty program assistance to minimize penalties and interest.

• Strategic planning to mitigate exposure from local jurisdictions and special tax districts.

• Tailored projects and advisory engagements to address unique or emerging SALT issues.