What dates to use when reporting a fiscal year Texas Franchise tax return that ends on 04/30/2022

A Texas 2023 report year covers an accounting period that ends in 2022. Texas instructions state that the accounting period end date should be the last accounting period end date for federal income tax purposes in the year before the year the report is originally due.

In Drake Tax 2023, if

• the federal return has fiscal year accounting dates

• the federal accounting year end date is in 2023

then the Texas program subtracts one year from the beginning and ending federal accounting dates to determine the accounting period for the Texas report that is due in 2022.

For example, if the federal accounting dates are 05/01/2022 to 04/30/2023, the corresponding Texas accounting dates are 05/01/2021 to 04/30/2022.

Written confirmation has been received from the state that this is the correct approach. Income and deduction amounts will need to be verified since the program carries information from the current federal return to the state return.