Tax Law in Texas

Tax touches a business or family in two very different ways. There is the planning side — the structuring done in advance to keep tax exposure as low as the law allows. And there is the controversy side — what happens when a taxing authority comes calling with an audit, an assessment, or a lien. Both demand the same things: strict attention to deadlines, careful documentation, and an understanding of authorities that wield significant enforcement power. Federal matters are governed by the Internal Revenue Code; in Texas, the Tax Code, the Comptroller, and local appraisal districts round out the picture.

Thoughtful entity selection, transaction structuring, and estate considerations can meaningfully reduce what a person or business owes and head off costly surprises. Texas imposes no personal income tax, but businesses still face franchise tax, sales and use tax, and other state obligations that reward careful planning.

Even with sound planning, disputes happen. On the federal side, the IRS may pursue audits, assessments, penalties, liens, and levies — each carrying deadlines that must be met to protect a taxpayer’s rights. At the state level, the Texas Comptroller conducts its own audits and assessments, with a defined appeals process. And for property owners, disputes over appraised values, exemptions, and assessments run through the appraisal review boards and, when necessary, the courts. When a liability simply cannot be paid in full, tools like installment agreements, offers in compromise, and penalty abatement can provide a way out.