Can a retailer keep filing Texas sales tax returns on a 4-5-4 fiscal accounting schedule instead of strict calendar months for the year 2000?

Plain-English summary

A retailer using a 4-5-4 fiscal accounting schedule (a common retail-industry calendar that divides the year into accounting periods of 4, 5, and 4 weeks per quarter, rather than strict calendar months) asked the Comptroller to renew permission to keep filing its Texas Sales and Use Tax Returns on that basis for the year 2000. The Comptroller confirmed the 4-5-4 method is acceptable, and specified how due dates map onto it:

• If an accounting period ends on the 1st through the 10th of a month, the return is due on the 20th of that same month (e.g., a period ending April 1-10 is reported on the March return, due April 20).
• If an accounting period ends on the 11th through the last day of a month, the return is due on the 20th of the following month (e.g., a period ending June 11-30 is reported on the June return, due July 20).

What this means for you

Retailers using a 4-5-4 or similar non-calendar fiscal accounting schedule

Texas will accept a 4-5-4 (or similarly structured) fiscal schedule for sales tax reporting purposes — you don't need to convert to strict calendar months. Just map your period-end dates to the two due-date rules above so you file on time.

Accountants and tax professionals for retail clients

This is a companion rule to the standard 20th-of-the-month sales tax due date: the twist for non-calendar fiscal schedules is just which month's return a given accounting period lands on, based on whether the period ends in the first ten days or the remainder of a calendar month.

Common questions

Q: Can a retailer file Texas sales tax returns using a 4-5-4 fiscal calendar instead of strict calendar months?
A: Yes, the Comptroller accepts this method, as confirmed in this renewal letter.

Q: When is the return due if my fiscal accounting period ends April 5?
A: On the March return, due April 20 — periods ending the 1st through the 10th of a month are treated as belonging to the prior return period, due the 20th of that same month.

Q: When is the return due if my fiscal accounting period ends June 20?
A: On the June return, due July 20 — periods ending the 11th through the last day of a month are due the 20th of the following month.

Q: Can another retailer using a different fiscal schedule rely on this letter?
A: Only the taxpayer who requested it can use it for detrimental reliance, and it's a renewal specific to that taxpayer's existing 4-5-4 schedule — a business wanting to adopt a similar schedule should request its own confirmation.

Citations and references

No specific Tax Code section or Comptroller rule number is quoted in this letter; the due-date mapping is stated directly as the Comptroller's own filing requirement for this accounting method.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9910830L

Original ruling text

October 27, 1999

Dear **:

This is in response to your request that your 4-5-4 reporting schedule be
renewed for 2000. You are requesting permission to continue filing your Sales
and Use Tax Returns on the basis of the schedule attached.

Response: Your 4-5-4 method of accounting for your sales in 2000 is
acceptable. Our requirements for reporting these sales are as follows:

• For accounting periods ending the 1st through the 10th day of a month, the
  due date will be the 20th of that month. (e.g., if the accounting period ends
  April 1 through April 10, the data is to be reported on the March return due
  April 20)

• For accounting periods ending on the 11th through the last day of the month,
  the due date will be the 20th of the next month. (e.g., if the accounting
  period ends June 11 through June 30, the data is to be reported on the June
  return due July 20)

This opinion is based on the facts presented. Other facts though similar may
provide a different result. I hope this information answers your questions.

If you need additional information, please call me toll-free at 1-800-531-5441,
extension 3-4502. The direct line is 512/463-4502. You may also write to Tax
Policy Division, Comptroller of Public Accounts. You may also e-mail our tax
help section at:

Sincerely,

Gilbert Zamora
Tax Policy