Tex. Codes » Tax Code · TITLE 2. STATE TAXATION · SUBTITLE F. FRANCHISE TAX; CREDITS · CHAPTER 171. FRANCHISE TAX
Texas Codes

Tex. Tax Code § 171.251 (2026)

Forfeiture Of Corporate Privileges

✓ current as of May 2026
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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. 2002).
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Hinkle v. Adams, 74 S.W.3d 189 (Tex. App. 2002). · cites it 2× “See Tex. Tax Code Ann. § 171.251 (Vernon 2002); Tex.”
Perry v. Dearing (In Re Perry), 345 F.3d 303 (5th Cir. 2003). “Tex. Tax Code Ann. §§ 171.251 , 171.309, 171.”
Greene v. State, 324 S.W.3d 276 (Tex. App. 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. 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. 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., Sharon C. Dixon, James Dixon, Crown Staffing, Inc. & Troy Keith Dixon v. James A. Robinson, 390 S.W.3d 497 (Tex. App. 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 & Tania Hovel v. Gal Batzri, 490 S.W.3d 132 (Tex. App. 2016). “See Tex. Tax Code Ann. §§ 171.251 -.257 (West 2015).”
Wilburn v. State, 824 S.W.2d 755 (Tex. App. 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.”
Texas Clinical Labs, Inc. v. Leavitt, 535 F.3d 397 (5th Cir. 2008). “” Tex. Tax Code Ann. § 171.251 (2). Section 171.”
Viajes Gerpa, S.A. v. Fazeli, 522 S.W.3d 524 (Tex. App. 2016). “Tex. Tax Code Ann. § 171.251 (West 2015).”
Virtual Healthcare Servs., Ltd. v. Laborde, 193 S.W.3d 636 (Tex. App. 2006). “Tex. Tax Code Ann. §§ 171.251 , 171.256 (Vernon 2002).”
Show all 46 citing cases →
— Tex. Tax Code § 171.251(2) — 2 cases
Veigel v. Tex. Boll Weevil Eradication Found., Inc., 549 S.W.3d 193 (Tex. App. 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.”
Brandy L. Liss, Indep. of the Est. of Mary Jane, Travis James & Bay Area Shooter's Ctr. LLC v. Cushman & Wakefield of Texas, Inc., Edward Nowokedim Tin Ho Tsang & Cyril Chiosa (Tex. App. 2025).
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