Tex. Tax Code Section 111.0043
General Audit and Prehearing Powers


(a)

In this section:

(1)

“Person” includes an individual, corporation, partner, partnership, officer, or director of a corporation, joint venture, trust, trustee, agent, or association.

(2)

“Taxpayer” means the person whose tax obligation the comptroller is seeking to determine.

(b)

(1) Before a determination of or a hearing on a taxpayer’s tax obligation, if any, the comptroller may issue a subpoena addressed to the sheriff or constable of any county in this state to require any person who the comptroller determines may provide assistance in the examination of a taxpayer’s tax obligation to appear at the place and time stated in the subpoena for the taking of his oral deposition before an official authorized to take depositions. The subpoena may require the person to produce at the time of the deposition books, documents, records, papers, accounts, and other objects as may be specified by the comptroller. The subpoena must include a statement setting out the reason why the requested material is needed.

(2)

The deposition shall be taken in the county of the person’s residence or in the county where the person is employed or regularly transacts business. The subpoena shall specify that the person shall remain in attendance from day to day until the deposition is begun and completed.

(3)

The officer taking the oral deposition may not sustain objections to any of the testimony taken or exclude any of it.

(4)

When the testimony is fully transcribed, the deposition shall be submitted to the person for examination and read to or by the person, unless the examination and reading are waived in writing by the person and by the comptroller. However, if the person is represented by an attorney of record, the deposition officer shall notify the attorney of record in writing by registered mail or certified mail that the deposition is ready for examination and reading at the office of the deposition officer. If the person does not appear and examine, read, and sign the deposition within 10 days after the mailing of the notice, the deposition shall be returned and may be used as fully as though signed. The officer shall enter on the deposition any changes in form or substance that the person desires to make and a statement of the reasons given by the person for making them. The deposition shall then be signed by the person, unless the person and the comptroller by stipulation waive the signing or the person is ill, cannot be found, or refuses to sign. If the deposition is not signed by the person, the officer shall sign it and state on the record the fact of the waiver, illness, or absence of the person or the fact of the refusal to sign, together with the reason, if any, given for failure to sign. The deposition may then be used as fully as though signed.

(5)

The deposition shall be returned to the comptroller by the official taking the deposition either by mail or by delivering it in person.

(c)

Before a determination of or a hearing on a taxpayer’s tax obligation, if any, the comptroller may:

(1)

issue a subpoena addressed to the sheriff or constable of any county in this state to require any person to produce at the place and time stated in the subpoena books, documents, records, papers, accounts, and other objects that the comptroller determines may assist in an examination of a person’s tax obligation;

(2)

issue an order to a person to permit entry upon designated land or other property in his possession or control for the purpose of inspecting, measuring, surveying, or photographing the property or any designated object or operation on the property that may be material to any matter involved in the examination; the order must specify the time, place, and manner of making the inspection, measurement, or survey and taking the copies and photographs and may prescribe any terms and conditions that are just;

(3)

copy or conduct a complete examination of books, documents, records, papers, accounts, and other objects that are produced as a result of the subpoenas or orders specified in this section; and

(4)

serve or have served by his designated agent any subpoena or order issued under this section by delivering a copy of the subpoena to the person.

(d)

A person, other than the taxpayer, who is subpoenaed to give a deposition or to produce books, records, papers, or other objects under the authority of this section is entitled to receive after presentation of a voucher sworn by the person and approved by the comptroller:

(1)

mileage of 20 cents a mile, or a greater amount as prescribed by agency rule, for going to and returning from the place of the hearing or the place where the deposition is taken, if the place is more than 25 miles from the person’s place of residence; and

(2)

a fee of $20 a day, or a greater amount as prescribed by agency rule, for each day or part of a day the person is necessarily present as a deponent.

(e)

If a person fails to comply with a subpoena or order issued under this section, the comptroller may:

(1)

acting through the attorney general, bring suit to enforce the subpoena or order in a district court of Travis County; the court, if it determines that good cause exists for the issuance of a subpoena or order, shall order the compliance with the requirements of the subpoena or order; failure to obey the order of the court may be punishable by the court as contempt;

(2)

use records, books, papers, and other documents obtained or depositions taken under this section only in an administrative hearing of the comptroller or a judicial proceeding brought by or against the comptroller; the information may be made available to the federal government or to another state under an exchange agreement; and

(3)

delegate his authority to issue subpoenas or orders and to participate in the taking of depositions as specified in this section to any attorney employed by him.

(f)

If a foreign corporation doing business in this state has such contact with this state that it becomes subject to the taxes administered and collected by the comptroller and fails to appoint or maintain a registered agent in this state, or if the registered agent cannot with reasonable diligence be found at the registered office, then the secretary of state shall be an agent of the corporation and may be served with any subpoena or other order issued under this section in the manner provided for service of process in Article 8.10, Texas Business Corporation Act, as amended.

(g)

Any person, including the taxpayer, shall be entitled to obtain upon request a copy of any statement he has previously made concerning the examination or its subject matter and which is in the possession, custody, or control of the comptroller. Copies of statements made to the comptroller by any person which are used as a basis for an assessment against a taxpayer may be obtained by the taxpayer upon request. If the request is refused, the person may move for an agency order under this subsection. For the purpose of this section, a statement previously made is:

(1)

a written statement signed or otherwise adopted or approved by the person making it; or

(2)

a stenographic, mechanical, electrical, or other recording, or a transcription thereof, which is a substantially verbatim recital of an oral statement by the person making it and contemporaneously recorded.
Acts 1981, 67th Leg., p. 1497, ch. 389, Sec. 1, eff. Jan. 1, 1982.

Source: Section 111.0043 — General Audit and Prehearing Powers, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­111.­htm#111.­0043 (accessed Jun. 5, 2024).

111.001
Comptroller to Collect Taxes
111.002
Comptroller’s Rules
111.003
Comptroller’s Investigations
111.004
Power to Examine Records and Persons
111.005
Governmental Entities to Cooperate
111.006
Confidentiality of Information
111.007
Criminal Penalties for Disclosing Federal Tax Information
111.008
Deficiency Determination
111.009
Redetermination
111.010
Suit to Recover Taxes
111.011
Tax Collections and Reports by Businesses
111.012
Security for the Payment of Taxes
111.013
Evidence: Tax Claims
111.014
Evidence: Copies of Graphic Matter
111.015
Remedies Cumulative
111.016
Payment to the State of Tax Collections
111.017
Seizure and Sale of Property
111.018
Notice of Sale of Seized Property
111.019
Sale of Seized Property
111.020
Tax Collection on Termination of Business
111.0021
Application to Other Taxes and Fees
111.021
Notice to Holders of and Levy Upon Assets Belonging to Delinquent
111.0022
Application to Other Laws Administered by Comptroller
111.022
Jeopardy Determination
111.023
Written Authorization
111.024
Liability in Fraudulent Transfers
111.025
Delinquent Taxpayer Financial Records
111.0034
Advanced Database System for Audits
111.0035
Advanced Database System for Tax Collections
111.0036
Out-of-state Audits
111.0041
Records
111.0042
Sampling in Auditing
111.0043
General Audit and Prehearing Powers
111.0044
Special Procedures for Third-party Orders and Subpoenas
111.0045
Use of Outside Personnel
111.0046
Permit or License
111.0047
Suspension and Revocation of Permit or License
111.0048
Reissued or New Permit or License After Revocation or Suspension
111.0049
Appeals
111.051
Reports and Payments
111.052
Form of Report
111.053
Filing Dates: Weekends and Holidays
111.054
Timely Filing: Mail Delivery
111.055
Timely Filing: Diligence
111.057
Extension for Filing Report
111.058
Filing Extension Because of Natural Disaster
111.059
Oath Not Required
111.060
Interest on Delinquent Tax
111.061
Penalty on Delinquent Tax or Tax Reports
111.062
Acceptance of Credit Cards for Payment of Certain Taxes and Fees
111.063
Penalty for Failure to Use Electronic Transfers and Filings
111.064
Interest on Refund or Credit
111.0075
Provision of Information Relating to Tax Audits
111.0081
When Payment Is Required
111.101
Settlement
111.0102
Suit Challenging Collection Action
111.102
Settlement on Redetermination
111.103
Settlement of Penalty and Interest Only
111.104
Refunds
111.105
Tax Refund: Hearing
111.106
Tax Refund: Notice of Intent to Bypass Hearing
111.107
When Refund or Credit Is Permitted
111.108
Recovery of Refund or Credit
111.109
Tax Refund for Wages Paid to Employee Receiving Aid to Families with Dependent Children
111.110
Tax Credit for Real Property Contributed to an Institution of Higher Education
111.201
Assessment Limitation
111.202
Suit Limitation
111.203
Agreements to Extend Period of Limitation
111.204
Beginning of Period of Limitation
111.205
Exception to Assessment Limitation
111.206
Exception to Limitation: Determination Resulting from Administrative Proceeding
111.207
Tolling of Limitation Period
111.251
Assignment on Payment by Third Person
111.252
Notice to Taxpayer
111.253
Venue for Enforcement of Assigned Claims
111.254
Reassignment
111.255
Recording of Assignment
111.351
Wireless Equipment for Auditors
111.352
Computer and Wireless Equipment for Enforcement Staff
111.353
Advanced Scanners for Field Offices
111.00452
Employment of Investigators
111.00455
Contested Cases Conducted by State Office of Administrative Hearings
111.00457
Information Relating to Other Permit or License Requirements
111.0511
Restricted or Conditional Payments to Comptroller Prohibited
111.0611
Personal Liability for Fraudulent Tax Evasion
111.0625
Electronic Transfer of Certain Payments
111.0626
Electronic Filing of Certain Reports
111.1042
Tax Refund: Informal Review
111.2051
Assessment When Refund Claimed

Accessed:
Jun. 5, 2024

§ 111.0043’s source at texas​.gov