What Form 05-163 Is For
Form 05-163, the Texas Franchise Tax No Tax Due Information Report, was designed for businesses that owed no franchise tax but still needed to report their status to the Texas Comptroller of Public Accounts. For the 2013 report year, this form served as a simplified alternative to the more complex EZ Computation or Long Form franchise tax reports.
Who Qualifies
The form applies to several categories of entities:
- Businesses with annualized total revenue at or below the no tax due threshold ($1,030,000 for 2012–2013)
- Passive entities as defined in Texas Tax Code Section 171.0003
- Real Estate Investment Trusts (REITs) under Section 171.0002(c)(4)
- Entities with zero Texas gross receipts
Form Types
- Annual report — filed yearly
- Final report — filed when ending Texas operations or nexus
Required Companion Forms
Filing Form 05-163 does not replace:
- Form 05-102 (Public Information Report)
- Form 05-167 (Ownership Information Report, if applicable)
Important Update
For report years 2024 and later, Form 05-163 was discontinued. Entities below the threshold no longer file this form but must still submit required information reports.
When You’d Use Form 05-163
Filing Deadline
- Standard due date: May 15
- Adjusted if weekend/holiday
Regular Filing Situations
You would file if:
- You qualify under one of the eligibility categories
- You are submitting your annual franchise tax report
Late Filing Consequences
- $50 penalty applies even if no tax is owed
- Possible forfeiture of business rights after 45 days of non-compliance
- Risk of personal liability for officers/directors
Amended Reports
File an amendment if:
- Revenue was miscalculated
- Entity status was incorrectly reported
Extensions
- File Form 05-164 or request via Webfile
- Extension deadline: May 15
- Extended due date: November 15
- Final reports: 60-day deadline + 45-day extension
Key Rules or Details for 2013
Electronic Filing Requirements
- Paper filing allowed in 2013
- Mandatory electronic filing began for reports due after Jan 1, 2016
Revenue Threshold Calculation
- Must annualize revenue
- Formula:
- Actual revenue ÷ months in period × 12
Combined Groups
- Must file as a group if applicable
- Entire group must meet threshold to qualify
Tiered Partnerships
- Must file Form 05-175 along with required reports
Passive Entities and REITs
- Must meet strict statutory definitions
- Qualification is not automatic
Zero Texas Gross Receipts Rule
- Must be exactly zero
- Even $1 disqualifies eligibility under this category
Step-by-Step (High Level)
Step 1: Determine Eligibility
- Calculate annualized revenue
- Confirm qualification category
Step 2: Gather Required Information
- Taxpayer number
- Entity details and structure
- Reporting dates
- Officer/representative information
Step 3: Complete Form 05-163
- Enter identifying details
- Select qualification category
- Provide minimal financial data
- Sign under penalty of perjury
Step 4: Complete Form 05-102
- Required companion form
- Includes officer/director/member details
Step 5: Submit Both Forms
- Mail to Texas Comptroller OR
- File electronically via Webfile
Step 6: Retain Confirmation
- Keep copies and confirmation numbers
Common Mistakes and How to Avoid Them
Miscalculating Annualized Revenue
- Always annualize partial-year revenue
Forgetting the Public Information Report
- Always file Form 05-102 with Form 05-163
Misunderstanding Texas Gross Receipts
- Review sourcing rules carefully
Using the Wrong Form Version
- Annual vs. Final report matters
Missing the Deadline
- File extension if needed before May 15
Failing to Sign the Report
- Unsigned forms are rejected
Ignoring Combined Group Rules
- Evaluate group filing requirements properly
What Happens After You File
Processing Time
- Electronic: faster (days to ~2 weeks)
- Paper: slower (3–6 weeks)
Account Status Updates
- Reflects compliance and good standing
- Publicly searchable
Confirmation
- Electronic filing provides confirmation
- Paper filing may require manual verification
Notices and Corrections
- Issued for missing or incorrect information
- Must respond promptly
Future Filing Requirements
- Filing is required annually
- Status must be reassessed each year
Forfeiture Risk
- Triggered by non-filing or ignored notices
- Results in loss of business rights and legal protections
Reinstatement
- Requires:
- Filing missing reports
- Paying penalties/interest
- Requesting clearance (Form 05-391)
FAQs
What if my revenue is slightly below the threshold?
If your annualized revenue is at or below $1,030,000, Form 05-163 is appropriate. However, even exceeding the threshold by $1 disqualifies you. Always double-check calculations to avoid filing errors or delays.
Do I still need to file if I had no business activity?
Yes. If your entity is still registered, you must file. If no activity occurred, you may qualify under zero Texas gross receipts. Otherwise, file a final report if you are no longer operating.
Can I file Form 05-163 if I am part of a combined group?
No, not individually. Combined groups file a single report. Only if the entire group meets the threshold can a No Tax Due Report be filed.
What if I discover an error after filing?
You should file an amended report if the error affects revenue, qualification status, or key entity details. Minor clerical issues may not require amendment, but financial inaccuracies do.
How long does processing take?
Electronic filings typically process within days to two weeks. Paper filings may take three to six weeks. You can verify status online through the Comptroller’s system.
If I owe no tax, why does late filing matter?
Late filing still triggers a $50 penalty. More importantly, it can lead to forfeiture of your right to do business in Texas, which carries serious legal and financial consequences.
Is Form 05-163 still used today?
No. It was used through 2023. Starting in 2024, the Texas Legislature eliminated this requirement. Entities below the threshold now only file information reports, not a No Tax Due Report.
This guide is based on official publications from the Texas Comptroller of Public Accounts and reflects 2013 requirements. Always verify current rules before filing.
