Sec. 171.251. FORFEITURE OF CORPORATE PRIVILEGES. The comptroller shall forfeit the corporate privileges of a corporation on which the franchise tax is imposed if the corporation:
(1) does not file, in accordance with this chapter and within 45 days after the date notice of forfeiture is mailed or provided by electronic means, a report required by this chapter;
(2) does not pay, within 45 days after the date notice of forfeiture is mailed or provided by electronic means, a tax imposed by this chapter or does not pay, within those 45 days, a penalty imposed by this chapter relating to that tax; or
(3) does not permit the comptroller to examine under Section 171.211 the corporation's records.
Acts 1981, 67th Leg., p. 1703, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 10, art. 3, Sec. 5, eff. Sept. 1, 1984; Acts 1989, 71st Leg., ch. 584, Sec. 110, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.19, eff. Jan. 1, 1992; Acts 1993, 73rd Leg., ch. 546, Sec. 10, eff. Jan. 1, 1994.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1040 (S.B. 61), Sec. 3, eff. September 1, 2023.
Notes of Decisions
Cited in
46
cases (
4 in the last 5 years), 1989–2026 · leading case:
Hinkle v. Adams, 74 S.W.3d 189 (Tex. App.—Texarkana 2002).
Hinkle v. Adams, 74 S.W.3d 189 (Tex. App.—Texarkana 2002).
· cites it 2× “See Tex. Tax Code Ann. § 171.251 (Vernon 2002); Tex.”
Greene v. State, 324 S.W.3d 276 (Tex. App.—Austin 2010).
· cites it 2× “Tex. Tax Code Ann. § 171.251 (West 2008).”
Veigel v. Tex. Boll Weevil Eradication Found., Inc., 549 S.W.3d 193 (Tex. App.—Austin 2018).
“See Tex. Tax Code § 171.251(2). The parties agree that it was during these periods of forfeiture that the assessments at issue were incurred, the suits to collect them were filed, and the default judgments against Veigel Farms were signed.”
Hardwick v. Austin Gallery of Oriental Rugs, Inc., 779 S.W.2d 438 (Tex. App.—Austin 1989).
· cites it 2× “" At the beginning of trial, Hardwick moved the court to dismiss the company's suit on the basis of Tex.Tax Code Ann. § 171.251 (1982 & Supp.”
Tryco Enter. Inc. v. James A. Robinson, 390 S.W.3d 497 (Tex. App.—Houston [1st Dist.] 2012).
“See Tex. Tax Code Ann. §§ 171.251 , 171.256. The directors or officers of a corporation become liable for the corporation’s debts on the date after the report, tax, or penalty is due but not filed or paid.”
Robert Hovel v. Gal Batzri, 490 S.W.3d 132 (Tex. App.—Houston [1st Dist.] 2016).
“See Tex. Tax Code Ann. §§ 171.251 -.257 (West 2015).”
Wilburn v. State, 824 S.W.2d 755 (Tex. App.—Austin 1992).
“3, § 5, at 74 (Tex.Tax Code Ann. § 171.251, since amended).”
In re ABZ Ins. Servs., Inc., 245 B.R. 255 (Bankr. N.D. Tex. 2000).
· cites it 2× “Under Tex. Tax Code § 171.251, the comptroller shall forfeit the corporate privileges of a corporation for failure to file a report within 45 days of notice or failure to pay assessed franchise taxes within 45 days of becoming due.”
Tex. Tax Code § 171.251(2): 2 cases
Veigel v. Tex. Boll Weevil Eradication Found., Inc., 549 S.W.3d 193 (Tex. App.—Austin 2018).
“See Tex. Tax Code § 171.251(2). The parties agree that it was during these periods of forfeiture that the assessments at issue were incurred, the suits to collect them were filed, and the default judgments against Veigel Farms were signed.”
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