What Form 05-164 Is For
Form 05-164, officially called the Texas Franchise Tax Extension Request, allows businesses to extend the deadline for filing their annual or final franchise tax reports with the Texas Comptroller of Public Accounts. Think of it as formally asking the state for extra time—but unlike asking for an extension on your homework, this one requires you to pay most of what you'll owe upfront.
The form itself is relatively simple, asking for basic information about your business: your Texas taxpayer number, legal entity name, mailing address, and the amount of tax you're paying with the extension request. Most importantly, you'll need to calculate and submit a payment that covers either 90 percent of what you'll owe when you finally file, or 100 percent of what you paid last year (if that option applies to your situation).
It's worth noting that if you make an online extension payment through the state's Webfile system, you don't need to submit the paper Form 05-164 at all—the online payment serves as your extension request. For businesses that paid $500,000 or more in franchise taxes in the previous state fiscal year, you must use the TEXNET payment system instead of filing a paper form.
When You’d Use Form 05-164
You would file Form 05-164 anytime you can't meet the May 15 annual franchise tax report deadline. Common scenarios include waiting for final financial statements, dealing with accounting complications, handling ownership changes, or simply needing more time to ensure accuracy. The key is that your extension request must be submitted or postmarked on or before May 15—the original due date.
The form works for both annual reports (your regular yearly filing) and final reports (filed when your business closes or ends its Texas nexus). For final reports, which are normally due within 60 days after ending Texas business activity, the extension gives you an additional 45 days beyond that original deadline.
If your business is part of a combined group (multiple related entities filing together), you'll also need to file Form 05-165, the Extension Affiliate List, alongside Form 05-164. Combined groups that were together in the previous year can use the extension just like separate entities.
Businesses subject to Electronic Funds Transfer (EFT) requirements have a different timeline. If you paid between $10,000 and $499,999 in franchise taxes last year, you can request an extension through Webfile, which extends your deadline to August 15. You can then request a second extension to push the deadline to November 15. Businesses that paid $500,000 or more must use TEXNET for their extension payments.
Interestingly, if your business was under the no tax due threshold last year and only filed a Public Information Report (PIR) or Ownership Information Report (OIR), you can file a no-payment extension—essentially getting extra time without paying anything upfront, since you didn't owe tax in the prior year.
Form 05-164 is not used for amended returns. If you need to correct a previously filed report, you'll file an amended franchise tax report using the appropriate report form, not an extension request.
Key Rules or Details for the Tax Year
Payment Requirements
The Texas Comptroller operates on a "pay now, file later" philosophy when it comes to extensions. To get a valid extension, you must pay at least 90 percent of the tax you'll ultimately owe with your report, or 100 percent of what you reported as due on last year's franchise tax report.
There's an important catch with the 100 percent option: it's only available if your prior report was filed by May 14 of the current year, and it doesn't apply to first-time filers or entities that were part of a combined group last year but are filing separately this year.
First-Time Filers
First-year filers face stricter requirements—they cannot use the 100 percent payment option and must estimate and pay 90 percent of their actual tax liability.
Deadlines
Timing is critical. Your extension request must be received or postmarked on or before the original due date (typically May 15). Miss this deadline, and you're considered late—no extension will be granted.
When May 15 falls on a Saturday, Sunday, or legal holiday, the next business day becomes the due date.
Penalties and Interest
The extension grants you extra time to file, but not extra time to pay. If you underpay with your extension request, penalties and interest will apply.
- Penalties apply to any shortfall of the 90 percent payment from the original due date
- Penalties also apply to any remaining unpaid balance after the extended due date
There’s also a $50 penalty for filing any franchise tax report after the due date, even if no tax is owed.
EFT Requirements
- $10,000–$499,999: Use Webfile (extension to August 15, then November 15 possible)
- $500,000+: Must use TEXNET (payment code 13080)
- Do not submit Form 05-164 if using TEXNET
Step-by-Step (High Level)
Determine Filing Method
Start by determining whether you need to file on paper or electronically:
- Less than $10,000: Paper or Webfile
- $10,000–$499,999: Webfile required
- $500,000+: TEXNET required
Calculate Payment
- Use 100% of prior year (if eligible), or
- Estimate and pay 90% of current year liability
Complete the Form (If Filing by Paper)
Include:
- Taxpayer number
- Legal entity name
- Address
- Report year
- Accounting year end
- Payment amount
Attach Form 05-165 if part of a combined group.
Submit Payment and Form
- Mail to Texas Comptroller (postmarked by May 15)
- Include check or money order
File Electronically (If Applicable)
- Log into Webfile
- Select extension option
- Enter details and pay
- Save confirmation
TEXNET users must submit payment by 8 p.m. Central Time the business day before the due date.
Track Your Extended Deadline
- November 15 (most entities)
- August 15 (first EFT extension)
- 45 days after original deadline (final reports)
Common Mistakes and How to Avoid Them
Missing the Extension Deadline
Filing Form 05-164 on May 16 doesn't extend your deadline—it makes you late. Always submit by May 15.
Underpaying the Estimated Tax
Underestimating your liability leads to penalties and interest. Be conservative and consider rounding up.
Using the Wrong Payment Option
First-time filers and certain entities cannot use the 100 percent option. Always verify eligibility.
Filing Duplicate Requests
If you already paid via Webfile or TEXNET, do not send Form 05-164 again.
Forgetting Combined Group Requirements
Combined groups must submit Form 05-165 along with Form 05-164.
Misunderstanding the Extension
The extension only delays filing—not payment. You still must pay at least 90% by May 15.
What Happens After You File
Once the Comptroller's office receives your extension request and payment, they tentatively grant your extension. You won’t usually receive formal approval—your payment serves as confirmation.
- Save confirmation (Webfile)
- Keep copies (paper filing)
Prepare Your Final Report
Between now and your extended deadline, complete:
- Financial statements
- Taxable margin calculation
- Apportionment
- Correct report form
Final Payment or Refund
- Pay any remaining balance
- Overpayments are credited or refunded
Penalties for Underpayment
- 5% penalty if unpaid by original due date
- Additional 5% after 30 days
- Interest begins after 60 days
Final Filing Deadline
Even with an extension, missing the extended deadline results in a $50 penalty.
FAQs
Can I get an extension if I don't owe any franchise tax?
Yes. If your business was under the no tax due threshold last year and only filed a Public Information Report or Ownership Information Report (not a tax report), you can file a no-payment extension request. Simply submit Form 05-164 or use Webfile to request an extension without sending any payment. This extends your deadline for filing the information report to November 15.
What if I was part of a combined group last year but I'm filing separately this year?
You cannot use the 100 percent payment option based on last year's combined group report. Instead, you must estimate your separate entity's tax liability for the current year and pay at least 90 percent of that amount with your extension request. Your business's circumstances have changed, so you need to calculate based on your current situation.
Can a combined group request an extension?
Absolutely. Combined groups can request extensions just like separate entities. The group must file Form 05-164 for the extension request along with Form 05-165 listing all affiliated entities in the combined group. The payment requirements are the same: 90 percent of what the combined group will owe, or 100 percent of what the group paid last year (if the group filed together in the prior year).
What happens if my extension payment is slightly less than 90 percent of my actual tax?
You'll face penalties and interest on the shortfall. Penalty is 5 percent of the underpaid amount, with an additional 5 percent if not paid within 30 days of the original due date. Interest accrues beginning 60 days after the original due date. The penalty applies to the portion of the 90 percent that wasn't paid by May 15, and to any portion of the remaining 10 percent not paid by November 15. Accuracy in calculating your extension payment is important to avoid these charges.
If May 15 falls on a weekend, when is my extension due?
The next business day becomes your due date. If May 15 is a Saturday, your extension is due Monday, May 17 (assuming Monday isn't a holiday). The same rule applies to the extended filing deadline if November 15 falls on a weekend or holiday. Texas observes the practical reality that government offices aren't open on weekends and holidays.
Can I file an amended report if I made a mistake?
Yes, but you don't use Form 05-164 for amendments. Extensions are only for getting extra time before your initial filing. If you've already filed a franchise tax report and discovered errors, you'll need to file an amended franchise tax report using the appropriate report form for the year you're correcting, not an extension request. The Comptroller's office provides specific forms and instructions for amended reports.
I paid $500,000 in franchise taxes last year—can I still use Form 05-164?
No. Entities that paid $500,000 or more in the previous state fiscal year must use the TEXNET system to request extensions and make extension payments. You'll use tax type payment code 13080 (Franchise Tax Extension), and you should not submit the paper Form 05-164. TEXNET payments must be initiated by 8 p.m. Central Time on the business day before the due date. Entities in this category are considered large taxpayers requiring electronic processing for efficiency and security.
