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Texas Comptroller revenue estimate results in reduced franchise tax rates for 2015 reports

In a recently released document, the Texas Comptroller of Public Accounts has provided the certification required to enact reduced Revised Texas Franchise Tax (RTFT) rates for 2015 reports (generally based upon business done during federal income tax periods ending in 2014). As a result of the certification, businesses other than retailers and wholesalers may elect a reduced tax rate of 0.95%, and retailers and wholesalers may elect a reduced tax rate of 0.475% for 2015 reports. The reduced rates raise tax accounting issues that should be addressed in order to properly reflect the RTFT in an enterprise’s financial statements.

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