What Form 05-164 Is For
Form 05-164 is the Texas Comptroller's official paper form for requesting an extension of time to file your franchise tax report. The Texas franchise tax is a privilege tax imposed on entities formed in Texas or doing business in Texas, and most taxable entities must file annual reports by May 15 each year. When businesses cannot meet this deadline, Form 05-164 allows them to request additional time—typically extending the due date to November 15 for annual reports.
Types of Form 05-164
There are two versions of Form 05-164: one for annual reports (covering regular yearly filings) and another for final reports (when a business is ending its Texas nexus, terminating, converting, or merging).
Required Information
The form itself is relatively straightforward, requiring basic information about your business including your Texas taxpayer number, entity name, accounting period dates, and critically, the amount of tax you're paying with the extension request.
Electronic Filing Option
While Form 05-164 remains available as a paper option, the Texas Comptroller strongly encourages electronic filing through Webfile. In fact, if you make an online extension payment through Webfile, you should not submit a paper Form 05-164—the electronic filing replaces the need for the paper form entirely. Businesses that paid $10,000 or more in franchise taxes during the previous state fiscal year are required to use electronic methods for their extension payments.
When You’d Use Form 05-164
You would use Form 05-164 when you cannot file your franchise tax report by its original due date and need additional time to prepare your filing.
Annual Reports
For annual reports, this means requesting an extension before the May 15 deadline.
Final Reports
For final reports—filed when your business ends its nexus with Texas—you must request an extension before the 60-day deadline following the date you ceased having sufficient nexus with Texas.
Filing Context
The form is appropriate whether you're filing as a separate entity or as part of a combined group. However, timing is critical: your extension request must be received or postmarked on or before the original due date of the report. A late extension request provides no protection from penalties.
What This Form Is NOT For
Importantly, Form 05-164 is not for requesting amended returns or correcting previously filed reports. It serves solely to extend the filing deadline forward. If you've already filed your franchise tax report and later discover errors, you would need to file an amended report using different procedures, not an extension request.
Payment Requirement Reminder
You should also understand that requesting an extension extends your time to file the report, but it does not extend your time to pay the tax owed. Payment of at least 90 percent of your current year's tax liability—or 100 percent of last year's tax if eligible—must accompany your extension request for it to be valid.
Key Rules or Details for Texas Franchise Tax Extensions
Several critical rules govern franchise tax extensions in Texas.
Payment Requirements
First and foremost is the payment requirement: to receive a valid extension, you must generally pay either 90 percent of the tax that will be due with your current year's report, or 100 percent of the tax you reported on your prior year's franchise tax report.
The 100 percent option is only available if your prior report was filed on or before May 14 of the year for which you're requesting the extension.
Eligibility Limitations
Certain entities cannot use the 100 percent payment option:
- First-year filers must pay 90 percent of current liability
- Entities switching from combined to separate filing cannot use prior-year option
Penalty Rules
If your extension request doesn't meet the payment requirements when you file your actual report, penalties and interest will apply.
- Penalty applies to unpaid portion of required 90%
- Additional penalties apply if remaining 10% isn’t paid by extended deadline
Extension Deadlines
- Annual reports: extended to November 15
- Final reports: extended by 45 days
- EFT payers: may qualify for August 15 intermediate extension
Late Filing Penalties
- $50 penalty for late report
- 5% penalty for 1–30 days late
- 10% penalty after 30 days
- Interest begins after 61 days
Step-by-Step (High Level)
Step 1: Determine Eligibility and Payment
Review your prior year's franchise tax report to determine whether you qualify for the 100 percent option or must estimate 90 percent of current liability.
Step 2: Obtain the Correct Form
Download the correct version (annual or final) from the Texas Comptroller's website.
Step 3: Complete the Form
Provide:
- Texas taxpayer number
- Entity name
- Address
- Accounting period dates
- Extension payment amount
Step 4: Prepare Payment
If paying by check:
- Make payable to Texas Comptroller
- Include taxpayer number and report year
- Attach Form 05-170
Step 5: Submit Before Deadline
Mail your form and payment so it is postmarked on or before the original due date.
Step 6: Keep Records
Save copies and proof of mailing for your records.
Step 7: Track Extended Deadline
Mark:
- November 15 (annual reports)
- 45-day extension (final reports)
Common Mistakes and How to Avoid Them
Late Filing
Submitting the extension after the due date makes it invalid.
Underpayment
Paying less than required 90 percent results in penalties later.
Misusing Payment Options
Using the 100 percent rule incorrectly can invalidate your extension.
Duplicate Filing
Submitting both Webfile and paper form creates confusion.
Misunderstanding Payment Rules
An extension to file does NOT mean an extension to pay.
What Happens After You File
Once the Texas Comptroller receives your Form 05-164 and payment, they will process your extension request.
Tentative Approval
Your extension is “tentatively granted” pending payment verification.
During the Extension Period
You should:
- Prepare your actual report
- Calculate final tax liability
- File before extended deadline
Final Verification
The Comptroller will confirm:
- Whether you paid enough
- Whether penalties apply
If Requirements Are Met
- No penalties
- Remaining balance due at filing
If Requirements Are NOT Met
- Retroactive penalties and interest
- Billing notice issued
Missing Extended Deadline
Failure to file results in:
- $50 penalty
- Additional percentage penalties
- Interest accrual
- Possible enforcement actions
FAQs
Can I request an extension if I don't owe any franchise tax?
Yes, even entities that expect to owe no tax can request an extension. If you filed only a Public Information Report or Ownership Information Report last year because you were under the no tax due threshold, you can file a "no payment" extension for the current year. This extends your deadline to November 15 without requiring any payment.
Is the extension automatic once I submit my payment?
The extension is tentatively granted when you submit a timely request with payment, but it's not truly automatic. The Comptroller verifies eligibility later when you file your report.
Can I get more than one extension?
Yes, but only for entities required to use Electronic Funds Transfer. These entities may receive two extensions (August 15 and November 15).
What's the difference between the annual and final report extension forms?
Annual applies to regular filings. Final applies when closing or ending Texas nexus. Final reports receive a 45-day extension instead of November 15.
Can I use prior-year tax if I was in a combined group?
No. If you switch from combined to separate filing, you must use the 90 percent estimated payment option.
Do I need to file Form 05-164 if I pay online?
No. Webfile submission replaces the paper form.
What happens if my payment fails?
A failed payment invalidates your extension, and penalties apply from the original due date.
