Tax Attorney in Texas

No. Texas is one of nine states with no personal income tax. The Texas Constitution prohibits a state income tax on individuals without a statewide voter referendum. That said, Texas does impose franchise tax on most business entities under Tex. Tax Code Chapter 171, sales-and-use tax under Chapter 151, and Texas Workforce Commission unemployment tax on employers. Federal income tax (filed on Form 1040 with the IRS) applies in full to Texas residents.

The U.S. Tax Court holds permanent-courtroom trial sessions in Dallas, Houston, and San Antonio. El Paso and Lubbock are listed places of trial but use rented facilities only when a session is scheduled. A petitioner designates the preferred place of trial on the petition under Tax Court Rule 140. If you live in West Texas, San Antonio or Lubbock is often the practical choice; the Panhandle frequently routes to Lubbock or Dallas; the Rio Grande Valley typically routes to San Antonio or Houston.

Under Tex. Tax Code §111.201, the Comptroller generally has four years from the date a tax becomes due to assess the deficiency. The period is extended where the return was not filed, where fraud is found, or where the taxpayer signs a written waiver. The federal IRS Collection Statute Expiration Date (10 years from assessment under IRC §6502) runs independently from the state SOL.

Yes, but they audit different taxes. The IRS examines federal income tax, federal employment tax, and federal excise tax. The Texas Comptroller examines state franchise tax, sales-and-use tax, and a handful of other state-administered taxes. A Texas business can simultaneously face an IRS payroll audit (Form 941 issues) and a Comptroller sales-tax audit. The two agencies do share information through information-exchange agreements, and an adjustment in one forum often triggers a look at the other.

Texas does not operate a formal Offer in Compromise program in the way the federal IRS does under IRC §7122. The Texas Comptroller may negotiate settlements of disputed liabilities, accept payment plans, and issue penalty waivers under Tex. Tax Code §111.103 where reasonable cause exists. For the federal side, the IRS OIC remains the standard mechanism for resolving a tax balance for less than the full amount when collectibility or liability is genuinely in doubt.

Your CSED is calculated from the date of assessment, which appears on your IRS Account Transcript as Transaction Code 150 (return filed) or Transaction Code 290 (additional assessment). Add ten years, then add the days for any tolling events: pending OICs, CDP hearings, bankruptcy stays, and so on. The IRS publishes the CSED date internally on its CC ACTRA transcript; we pull this for clients as part of every engagement. The practical impact is significant — a debt assessed in 2016 may be approaching expiration in 2026, and aggressive enforcement near the CSED is common.

Probably yes for the federal trust-fund portion. IRC §6672 assesses a Trust Fund Recovery Penalty against any "responsible person" who "willfully" failed to pay over withheld taxes — the FICA and federal income-tax withholding portion of Form 941, not the employer's share. The IRS conducts a Form 4180 interview to identify responsible persons. Anyone with check-signing authority, payroll-decision authority, or knowledge of the unpaid taxes can be assessed. On the state side, Texas Comptroller sales-tax responsible-person liability operates under similar principles for entities that collect sales tax in trust.

Yes. IRC §7345 authorizes the IRS to certify "seriously delinquent" tax debt — currently $62,000 for 2026, indexed for inflation — to the State Department, which may then deny passport renewal or revoke an active passport. The certification reverses when the debt is paid, an IA is in place, an accepted OIC is in force, an active CDP hearing is pending, or Innocent Spouse Relief is in process. For Texas energy-sector workers, NASA contractors, and international consultants, decertification is often urgent and can be processed in 30 days or less.

Federal tax-resolution fees vary by matter complexity. A straightforward Installment Agreement typically falls between $1,500 and $3,500. A full Offer in Compromise with Form 433 financial analysis runs $4,000 to $7,500. Audit defense depends on the audit type and the number of issues. A U.S. Tax Court petition with case workup and trial preparation generally starts at $6,000 and rises with complexity. VTL provides a written fee quote after the free consultation. Cal Bar Rule 7.1 prohibits comparisons claiming we are cheaper or faster than competitors without verifiable substantiation, so we do not market on price.

Yes. Communications between you and a licensed attorney for the purpose of seeking legal advice are protected by federal common-law attorney-client privilege, subject to the usual exceptions (crime-fraud, waiver, etc.). The narrower federally-authorized tax practitioner privilege under IRC §7525 applies to non-attorney CPAs and EAs but does not extend to criminal-tax matters. An attorney handling your tax case retains the broader privilege that survives criminal investigation.

A Tax Court trial is a bench trial — no jury — before a Judge or Special Trial Judge of the U.S. Tax Court. The session opens with calendar call where the Court hears scheduling issues. Most cases on the calendar settle before trial; the IRS Office of Chief Counsel attorney for the case meets with petitioner's counsel during the days before trial. If trial proceeds, the petitioner bears the burden of proof on most issues, presents evidence and witness testimony, and the Court issues a written opinion typically within several months of trial. Small-tax-case procedure under IRC §7463 applies to deficiencies of $50,000 or less per year and uses a simplified evidentiary standard.

Yes, generally. IRC §6331(k)(1) suspends levy action while an offer is pending and for 30 days after a rejection, and during any timely-filed Appeals review of a rejection. The IRS will not levy on you while a processable OIC is being evaluated. However, the IRS may still file a Notice of Federal Tax Lien during the OIC pendency to protect its position. CSED is also tolled during the pendency. A poorly-prepared OIC that gets returned (not rejected) does not provide the same protection — processability matters.

For administrative redetermination at the Texas State Office of Administrative Hearings, taxpayers may represent themselves or be represented by an attorney, a CPA, or another authorized representative under Texas Comptroller rules. For judicial review proceeding in Travis County district court, an attorney admitted in Texas is required. VTL handles the federal side of overlapping matters and coordinates with Texas counsel where state-court litigation is necessary. Many Comptroller disputes resolve at the SOAH stage without ever reaching state court.