What the Form Is For
Form 05-164 is the official document businesses use to request additional time to file their Texas franchise tax reports. The Texas franchise tax is a privilege tax that most entities formed in Texas or doing business in Texas must pay annually, including corporations, limited liability companies, partnerships, banks, and professional associations. The standard deadline is May 15 each year, but Form 05-164 allows eligible entities to extend their filing deadline to November 15—a full six additional months.
Think of this form as your official request for a timeout. However, it's important to understand that an extension to file is not an extension to pay. You still need to estimate and pay most of what you'll owe by the original May deadline. The extension simply gives you more time to complete the paperwork and finalize the exact numbers.
According to the Texas Comptroller's guidance on extensions, the extension will be "tentatively granted" upon receipt of a timely request with the appropriate payment. The keyword here is "tentatively"—your extension is valid only if you meet all payment requirements and file by the original due date.
When You’d Use This Form
You would use Form 05-164 when filing your annual franchise tax report by May 15 seems impossible or impractical.
Common Scenarios
- Waiting for final financial statements
- Dealing with complex accounting issues
- Experiencing staff shortages
- Needing more time to gather documentation for deductions
Situations Where This Form Does NOT Apply
- Late filings (after May 15 without extension)
- Amended returns after filing
- Correcting previously submitted reports
Special Cases
- Applies to both annual and final reports
- Final reports get an additional 45-day extension
- Large taxpayers may need to use TEXNET or Webfile instead
Key Rules or Details for the Tax Year
Payment Requirement
To receive a valid extension, you must pay:
- 90% of the tax that will ultimately be due, OR
- 100% of the tax reported on last year’s return
Restrictions on the 100% Option
- Prior report must have been filed on time
- Not allowed for first-time filers
- Not allowed if switching from combined group to separate filing
Filing Deadline Rules
- Must be submitted or postmarked by May 15
- Late submissions (even May 16) are invalid
No Tax Due Extensions
- Available if under the no tax due threshold
- Still requires filing the extension form
Penalties and Interest
- 5% penalty for underpaying the 90% requirement
- Additional penalties after November 15
- Interest starts 61 days after May 15
Large Taxpayer Requirements
- Mandatory EFT filers must use TEXNET for first extension
- Form 05-164 may be used for second extension
Step-by-Step (High Level)
Step 1: Determine Eligibility and Payment Option
Calculate either:
- 90% of expected tax
- 100% of prior year tax
Step 2: Choose Filing Method
- Electronic (Webfile — preferred)
- Paper filing (Form 05-164)
Step 3: Complete the Form (If Filing on Paper)
Include:
- Texas taxpayer number
- Business name and address
- Contact details
Step 4: Calculate and Submit Payment
- Enter correct payment amount
- Include taxpayer number and report year on check
Step 5: Mail the Form
Send to:
Texas Comptroller of Public Accounts
P.O. Box 149348
Austin, TX 78714-9348
Step 6: Track Your New Deadline
- Mark November 15 as your final deadline
Common Mistakes and How to Avoid Them
Mistake 1: Confusing Extension to File with Extension to Pay
Always pay at least 90% by May 15.
Mistake 2: Missing the Deadline
Late requests are automatically denied.
Mistake 3: Underestimating Payment
Pay slightly more rather than less to avoid penalties.
Mistake 4: Misusing the 100% Option
Not available for:
- First-year filers
- Certain filing status changes
Mistake 5: Using the Wrong Filing Method
Large taxpayers may need TEXNET instead of Form 05-164.
Mistake 6: Forgetting the Extended Deadline
November 15 is final—no excuses.
What Happens After You File
Extension Status
- Automatically granted if requirements are met
- No formal approval notice is typically issued
Your New Deadline
- November 15 (final for most businesses)
What to Do During the Extension Period
- Gather financial statements
- Calculate revenue and deductions
- Prepare complete report
Filing Your Final Report
- Compare final tax vs. extension payment
- Pay remaining balance or receive refund
Consequences of Missing November 15
- $50 late filing penalty
- 5%–10% penalties on unpaid tax
- Interest accrual
Possible Audit
- Maintain documentation for:
- Calculations
- Payments
- Supporting records
FAQs
Can I file an extension if my business owes no franchise tax?
Yes. If your business is under the no tax due threshold or owed zero tax last year, you can file a no payment extension request. Simply submit Form 05-164 by May 15 without including a payment. This extends your deadline for filing required information reports to November 15.
What if I can't estimate 90 percent of my tax liability accurately?
Make your best reasonable estimate based on available financial information. It's better to slightly overestimate than underestimate. If your actual tax liability is lower, you'll receive a refund or credit. If you underestimate, penalties may apply.
If I was part of a combined group last year, can I use the 100 percent payment option?
No. Entities previously included in a combined group cannot use the 100 percent option when filing separately. You must estimate and pay at least 90 percent.
Do I need to file Form 05-164 if I pay online?
No. An online payment through Webfile serves as your extension request.
What happens if May 15 falls on a weekend or holiday?
The deadline moves to the next business day.
Can I request an extension for a final franchise tax report?
Yes. Final reports can be extended by 45 days using Form 05-164-F.
If my payment doesn't meet 90 percent, is my extension invalid?
The extension remains valid for filing, but penalties and interest will apply to the unpaid portion.
For additional information and to access current forms, visit the Texas Comptroller's Franchise Tax page or call 1-800-252-1381.
