The Texas Comptroller recently updated its handout providing taxpayers with information on how to contest disagreed audits, examinations, and refund denials. However, with respect to contesting audits, the Comptroller fails to address an important procedural vehicle that allows a taxpayer to go directly into district court, bypassing the administrative process altogether. Under the Tax Code, a taxpayer has the right to directly challenge an audit assessment in the Travis County district courts. One significant advantage to bringing a district court suit is that the decision maker is an elected judge, rather than the Comptroller. A district court suit also gives the taxpayer better control over the timing of the proceedings that may allow for a quicker resolution, providing certainty as to the tax results for future transactions. For more information on procedural options available to taxpayers, see Challenging State Tax Assessments: Choosing Your Battleground by Jimmy Martens.
Comptroller Handout Fails to Address Taxpayer’s Right to Bring Protest Suit
June 27, 2016