What is the next step after receiving an audit notice from the State? The answer is a Texas Sales Tax Redetermination Hearing. A Redermination hearing will afford a business owner the opportunity to contest the liability associated with their sales and/or use tax account with the State of Texas. It is important to note that this window will not be held open for an unlimited amount of time. Once the State has heard the case of a business owner, they will issue a determination. It is also important to note, that there is a timeline to file an objection with the state or to let the issue resolve with the State’s position.
The Texas Comptroller’s determination generally becomes final on the expiration of 30 days after the day on which the determination was served by personal service or by mail, unless a petition for redetermination is filed before the determination becomes final. See Tex. Tax. Code §§ 111.009, 151.505. An order or decision of the Texas Comptroller on a petition for redetermination becomes final 20 days after service on the petitioner of the notice of the order or decision. See id. at § 111.009. With the exception of jeopardy determinations discussed below, the amount of a determination becomes due and payable 10 days after it becomes final if no petition for redetermination is filed. See id. § 111.0081(a). If a petition for redetermination is filed, the amount is due and payable 20 days after the Texas Comptroller’s decision in the redetermination hearing becomes final. See id. § 111.0081(c).
