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Ezel / Tax Rulings / TX
TX 8610L1153B10 Sales and/or Use Tax (State,Local,MTA) 1986-10-22

How could a monthly Texas sales-tax filer use a 13-period accounting year when only 12 returns were accepted annually?

Short answer: The filer could use the 13-period system, but had to combine two periods once each year. A period ending by the 10th was due on the 20th of that month; a later-ending period was due on the 20th of the next month.

Apply this to your situation

This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

Texas allowed sales-and-use-tax permit holders to use a commonly recognized accounting system that correctly reported their business, including a 13-period accounting year.

For a monthly filer, a period ending on or before the 10th was due on the 20th of that same month. A period ending from the 11th through the month's last day was due on the 20th of the next month.

Because the state's system accepted only 12 returns per year, a filer with 13 accounting periods had to combine two periods once each year. The letter supplied schedules for the requester's 1986–87 and 1987–88 fiscal years and instructed the filer not to change the preprinted period-ending dates on the state's computer-printed returns.

Common questions

Could the business use a 13-period accounting year? Yes.

How many monthly returns could Texas accept each year? Twelve.

How was the extra accounting period handled? Two periods had to be combined once each year.

Could the filer change the preprinted period-ending dates? No. The letter warned that doing so would prevent the returns from processing.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

October 22, 1986

Dear ****:

Thank you for your recent letter regarding ****. Any commonly
recognized accounting system which correctly reports the operation
of a business may be used by sales and use tax permit holders.

Monthly filers who employ a 13-month period, or other than a calendar
month accounting system, may file monthly sales and use tax returns
upon the following basis:

  1. Period ending on or before the 10th of the month, the due date
    will be the 20th of that month,

  2. Period ending on the 11th through the last day of the month, the
    due date will be the 20th of the next succeeding month.

Since only twelve returns can be accepted each year, two accounting
periods must be combined once each year for those persons on a
thirteen-month accounting year. Our computer is programmed to accept
and process returns only for designated period ending dates. Please
do not change your preprinted period ending dates on the computer-printed
returns as this will cause the returns to not process.

Your schedule is restated below with appropriate due dates for the
returns.

SALES TAX FISCAL YEAR 1986 - 1987

PERIOD 13 10/27/86 THRU 11/23/86
DUE DATE: 12/22/86

PERIOD 1 11/24/86 THRU 12/21/86
DUE DATE: 01/20/87

PERIOD 2 12/22/86 THRU 01/18/87
DUE DATE: 02/20/87

PERIOD 3 01/19/87 THRU 02/15/87
DUE DATE: 03/20/87

PERIOD 4 02/16/87 THRU 03/15/87
DUE DATE: 04/20/87

PERIOD 5 03/16/87 THRU 04/12/87
DUE DATE: 05/20/87

PERIOD 6 04/13/87 THRU 05/10/87
DUE DATE: 05/20/87 combine

PERIOD 7 05/11/87 THRU 06/07/87
DUE DATE: 06/22/87

PERIOD 8 06/08/87 THRU 07/05/87
DUE DATE: 07/20/87

PERIOD 9 07/06/87 THRU 08/02/87
DUE DATE: 08/20/87

PERIOD 10 08/03/87 THRU 08/30/87
DUE DATE: 09/21/87

PERIOD 11 08/31/87 THRU 09/27/87
DUE DATE: 10/20/87

PERIOD 12 09/28/87 THRU 10/25/87
DUE DATE: 11/20/87

FISCAL YEAR 1987 - 1988

PERIOD 13 10/26/87 THRU 11/22/87
DUE DATE: 12/21/87

PERIOD 1 11/23/87 THRU 12/20/87
DUE DATE: 01/20/88

PERIOD 2 12/21/87 THRU 01/17/88
DUE DATE: 02/22/88

PERIOD 3 01/18/88 THRU 02/14/88
DUE DATE: 03/21/88

PERIOD 4 02/15/88 THRU 03/13/88
DUE DATE: 04/20/88

PERIOD 5 03/14/88 THRU 04/10/88
DUE DATE: 04/20/88 COMBINE

PERIOD 6 04/11/88 THRU 05/08/88
DUE DATE: 05/20/88

PERIOD 7 05/09/88 THRU 06/05/88
DUE DATE: 06/20/88

PERIOD 8 06/06/88 THRU 07/03/88
DUE DATE: 07/20/88

PERIOD 9 07/04/88 THRU 07/31/88
DUE DATE: 08/22/88

PERIOD 10 08/01/88 THRU 08/28/88
DUE DATE: 09/20/88

PERIOD 11 08/29/88 THRU 09/25/88
DUE DATE: 10/20/88

PERIOD 12 09/26/88 THRU 10/30/88
DUE DATE: 11/21/88

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,

Al Van Allen
Tax Policy Section
Tax Administration Division

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