There is no minimum tax requirement under the franchise tax provisions.

• Any entity that calculates tax due that is less than $1,000 or that has total revenue less than or equal to $300,000 is not required to pay any tax.
• The entity, however, must submit all required reports to satisfy their filing requirements.
• Annualized per 12 month period on which the report is based.

This form will produce automatically if:

• The entity is passive as defined in Chapter 171 of the Texas Tax Code (interview form TX1 - box 50.)
• The entity has $300,000 or less in Total Revenue (interview form TX3.)
• The entity has zero Texas Gross Receipts (interview form TX3 - box 70).
• Used the Temporary Credit for Business Loss Carryforwards.
• Do not complete, this is no longer a valid field. (See page 19 of instructions).

To generate this form, complete the following:

1. Select interview Form TX1 - Texas Franchise Tax General Information.
• Input box 30 - Type: Franchise (1), Bank Franchise (2).
• Input box 31 - Report type: Annual (default)(1), Initial(2), Final (3) input 1 or 2.
• Input box 34 - Taxpayer name.
• Input box 35 - Taxpayer number.
• Input box 50 - X if a passive entity as defined in Chapter 171 of the Texas Tax Code input X. 
2. Alternatively, select interview Form TX3 - Franchise Tax Report.
• Input boxes 30-37 - Gross receipts or sales and other Revenue input less than $300,000.  
3. Alternatively, Select interview Form TX3 - Franchise Tax Report.
• Input box 70 - Gross receipts in Texas input 0.
4. Calculate.

Note: The appropriate box on line(s) 1 through 3 will be Xd according to input.

Minimum entries to produce the TX 05 -163(F) - Final No Tax Due Information Report.

1. Select interview Form TX1 - Texas Franchise Tax General Information.
• Input box 30 - Type: Franchise (1), Bank Franchise (2).
• Input box 31 - Report type: Annual (default)(1), Initial(2), Final (3) input 3 for Final.
• Input box 34 - Taxpayer name.
• Input box 35 - Taxpayer number.
• Input box 50 - X if a passive entity as defined in Chapter 171 of the Texas Tax Code input X. 
2. Alternatively, select interview Form TX3 - Franchise Tax Report.
• Input boxes 30-37 - Gross receipts or sales and other Revenue input less than $300,000.  
3. Alternatively, select interview Form TX3 - Franchise Tax Report.
• Input box 70 - Gross receipts in Texas input 0.
4. Calculate.

Notes:

• The appropriate box on line(s) 1 through 3 will be Xd according to input.
• See our article on this solution in Worksheet View.