Sec. 111.012. SECURITY FOR THE PAYMENT OF TAXES. (a) If the comptroller finds that a tax imposed by this title is insecure, the comptroller may require a taxpayer to:
(1) provide security for the payment of taxes; or
(2) establish a tax escrow account at a bank or other financial institution.
(b) The security may consist of:
(1) a cash deposit filed with the comptroller;
(2) a surety bond; or
(3) other security as permitted by the comptroller.
(c) The amount and form of the security shall be set by the comptroller, except that the amount may not be more than double the amount of taxes that the comptroller estimates will be due from the taxpayer during the succeeding 12 months.
(d) The comptroller shall give notice to a taxpayer from whom security or the establishment of a tax escrow account is required under this section.
(e) The tax escrow account must be established not later than the 10th day after the date notice is received from the comptroller requiring the establishment of the account.
(f) Before the comptroller requires a taxpayer to establish a tax escrow account, the comptroller must determine that:
(1) the taxpayer remitted or should have remitted a monthly average of $500 or more in tax collected from customers for the six-month period preceding the date that the notice requiring the establishment of a tax escrow account is sent by the comptroller to the taxpayer; and
(2) the taxpayer:
(A) failed to file two or more tax returns during the 12 months preceding the date that the notice requiring the establishment of a tax escrow account is sent by the comptroller to the taxpayer;
(B) has been issued a jeopardy determination under Section 111.022;
(C) has previously been determined to have collected tax but not remitted that tax under an administrative hearings decision issued by the comptroller;
(D) is insolvent because the taxpayer's liabilities exceed the taxpayer's assets or the taxpayer is unable to pay the taxpayer's debts as they become due;
(E) has assets that are subject to a court administered receivership; or
(F) has been notified that security is required under this section but has failed to provide evidence of the security on or before the 30th day after the date the security was requested.
(g) If a taxpayer does not furnish security to the comptroller or establish a tax escrow account as required by the comptroller before the expiration of 10 days following the day on which notice is received, the comptroller may:
(1) bring suit in a district court in Travis County for an order enjoining the taxpayer from engaging in business until the security is furnished or the tax escrow account is established; or
(2) pursue any other remedies or collection actions available to the comptroller under this chapter or Chapter 113 to ensure the security is furnished or the tax escrow account is established.
Acts 1981, 67th Leg., p. 1503, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1991, 72nd Leg., ch. 483, Sec. 1, eff. Sept. 1, 1991; Acts 2003, 78th Leg., ch. 209, Sec. 14, eff. Oct. 1, 2003.
Structure Texas Statutes
Subtitle B - Enforcement and Collection
Chapter 111 - Collection Procedures
Subchapter A. Collection Duties and Powers
Section 111.001. Comptroller to Collect Taxes
Section 111.002. Comptroller's Rules; Compliance; Forfeiture
Section 111.0021. Application to Other Taxes and Fees
Section 111.0022. Application to Other Laws Administered by Comptroller
Section 111.003. Comptroller's Investigations
Section 111.0034. Advanced Database System for Audits
Section 111.0035. Advanced Database System for Tax Collections
Section 111.0036. Out-of-State Audits
Section 111.004. Power to Examine Records and Persons
Section 111.0041. Records; Burden to Produce and Substantiate Claims
Section 111.0042. Sampling in Auditing; Projecting Assessments
Section 111.0043. General Audit and Prehearing Powers
Section 111.0044. Special Procedures for Third-Party Orders and Subpoenas
Section 111.0045. Use of Outside Personnel; Delegation of Powers
Section 111.00452. Employment of Investigators
Section 111.00455. Contested Cases Conducted by State Office of Administrative Hearings
Section 111.00457. Information Relating to Other Permit or License Requirements
Section 111.0046. Permit or License
Section 111.0047. Suspension and Revocation of Permit or License
Section 111.0048. Reissued or New Permit or License After Revocation or Suspension
Section 111.005. Governmental Entities to Cooperate
Section 111.006. Confidentiality of Information
Section 111.007. Criminal Penalties for Disclosing Federal Tax Information
Section 111.0075. Provision of Information Relating to Tax Audits
Section 111.008. Deficiency Determination
Section 111.0081. When Payment Is Required
Section 111.009. Redetermination
Section 111.010. Suit to Recover Taxes
Section 111.0102. Suit Challenging Collection Action
Section 111.011. Tax Collections and Reports by Businesses; Enforcement of Duties
Section 111.012. Security for the Payment of Taxes
Section 111.013. Evidence: Tax Claims
Section 111.014. Evidence: Copies of Graphic Matter
Section 111.015. Remedies Cumulative
Section 111.016. Payment to the State of Tax Collections
Section 111.017. Seizure and Sale of Property
Section 111.018. Notice of Sale of Seized Property
Section 111.019. Sale of Seized Property; Disposition of Proceeds
Section 111.020. Tax Collection on Termination of Business
Section 111.021. Notice to Holders of and Levy Upon Assets Belonging to Delinquent
Section 111.022. Jeopardy Determination
Section 111.023. Written Authorization