Can a Texas sales tax filer report on a 4-4-5 (or similar) fiscal accounting calendar instead of a strict calendar-month basis?

Plain-English summary

A retailer using a 4-4-5 (or similar 4/5-week) fiscal accounting calendar asked whether it could report Texas sales tax on that basis instead of ordinary calendar months. The Comptroller confirmed yes -- while Texas Tax Code reporting defaults to a calendar basis, filing on a fiscal calendar is permissible. But there are hard mechanical constraints: the state's system only accepts exactly 12 monthly returns per calendar year, each due the 20th of the month (that due date shifts only for weekends, holidays, or other non-working days, never extended for other reasons). The specific mapping rule: if your fiscal accounting period ends on the 1st through 10th of a month, you report it on that month's return (due the 20th of that same month); if it ends on the 11th through the last day of the month, you report it on the following month's return (due the 20th of the next month). Critically, taxpayers must NOT change the preprinted report period ending dates printed on the returns they receive -- altered returns won't process.

What this means for you

Retailers and businesses using a fiscal (non-calendar) accounting calendar

You can align your Texas sales tax filings with your own 4-4-5 or similar fiscal periods rather than switching to calendar-month tracking -- but you still must produce exactly 12 returns a year, due the 20th, following the specific 1st-10th vs. 11th-last-day mapping rule described above.

Anyone tempted to hand-edit their preprinted sales tax return

Don't change the report period ending dates that are preprinted on your return -- the Comptroller's processing system will reject it if you do.

Common questions

Q: Do I have to report Texas sales tax on strict calendar months?
A: No -- you may file based on your own fiscal accounting calendar (like a 4-4-5 system), as long as you still produce exactly 12 returns per year on the standard due-date schedule.

Q: What happens if my fiscal period ends mid-month?
A: If it ends the 1st-10th, report it on that month's return (due the 20th of that month); if it ends the 11th-last day, report it on the NEXT month's return (due the 20th of the following month).

Q: Can I change the printed period dates on my return to match my fiscal calendar?
A: No -- the letter warns that altering the preprinted report period ending dates will cause the return not to process.

Citations and references

This letter does not cite a specific Tax Code section or rule number in its text -- it describes the Comptroller's filing/reporting procedure directly.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9911900L

Original ruling text

November 16, 1999

Dear **:

Thank you for your letter concerning a 4-4-5 accounting calendar.

The Texas Tax Code requires reports to be filed on a calendar basis; however,
it is permissible to file based on your fiscal calendar. The returns are due
on the 20th day of the month and that due date cannot be extended except by
weekends, holidays, and other such non-working days. Our computer system will
accept only 12 monthly returns in a calendar year. The filing procedure
required by Texas is outlined below:

For accounting periods ending on the first through the 10th day of the month,
the due date will be the 20th of that month (i.e., 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 (i.e., if the accounting period
ends June 11 through June 30, the data is to be reported on the June return due
July 20).

Please do not change the preprinted report period ending dates on the returns
that you receive. If the dates are changed, the returns will not process. The
due date is shown on each return.

This opinion is based on the facts presented. Different though similar facts
could produce a different response. If you have additional questions or need
more information, you may call me at 1-800-531-5441, extension 3-4634. My
regular Austin number is 512/463-4634, and my fax number is 512/475-0900.
Written correspondence may be addressed to Tax Policy Division, Capitol
Station, Austin, Tx 78774.

Yours very truly,

Elizabeth Grieder
Tax Policy Division