The following diagnostic is generating:
If your combined group's total revenue for the year is less than $2,470,000, you do not need to file a Tax Affiliate Schedule (Form 05-166) or Common Owner Information Report (Form 05-177) alone. If you are filing electronically, make sure to exclude these forms before filing any Information report. If you do need to file those forms, you can include them with the return by overriding the franchise tax calculation method and file it as a conventional paper return. Alternately, use the override provided in the Texas Franchise Tax, Print Option Overrides section to suppress the Tax Affiliate Schedule (Form 05-166).
Solution:
This diagnostic generates when an affiliate has been entered in screen 49.433 and the total Texas combined revenue is below $2.47M.
(Chose One):
If you do need to file form 05-166:
- Go into screen 49.431, Texas Franchise Tax.
- Scroll to the section Deductions and Tax Adjustments.
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Make an entry in the field "Calculation method [O]: 1=COGS, 2=compensation, 3=70%, 4=EZ, 5=less 1 million, 6=EZ (no tax due)" to force a Texas main form to generate.
This return may needs be filed on paper.
If you don't need to file form 05-166:
- Go into screen 49.431, Texas Franchise Tax.
- Scroll to the section Print Option Overrides.
- Check the box "Suppress Affiliate Schedule(s) 05-166 (when below No Tax Due threshold)".
