Home / Redetermination Hearings & SOAH
Texas Comptroller · Contested Cases
Sixty days, in writing, with your reasons.
Texas gives you one administrative process to fight a Comptroller assessment without paying it first. It starts with a document called a statement of grounds, and it has to arrive before the assessment becomes final.
To contest a Texas Comptroller audit or examination without paying, you must deliver a written request for a redetermination hearing, with a statement of grounds, on or before the date the determination becomes final: 60 days after the statement date on the Texas Notification of Audit Results. A Comptroller attorney responds with a position letter. If the case does not settle, it is heard by an administrative law judge at the State Office of Administrative Hearings (SOAH), who issues a proposal for decision. The Comptroller then issues the final decision, which can be challenged in district court.
The statement of grounds
The Comptroller's own guidance is specific about what the request must contain. It must list the items you disagree with, individually or by category, and state the factual basis and the legal grounds for each. If you disagree with the agency's reading of the law, you must cite legal authority. It must be signed by you or an authorized representative, with a power of attorney attached if a representative signs.
A request that is late, or that does not state grounds, does not start a hearing. The Comptroller will send a letter explaining the deficiency and your remaining options, which at that point usually require paying first.
What happens after you file
- Auditor review. The request goes back to the auditor to consider new documents. Agreed changes are made without a hearing.
- Position letter. The case is assigned to a Comptroller attorney, who sends a letter accepting or rejecting each of your contentions and explaining why.
- Your reply. You can accept the position letter, or reply explaining your disagreement and ask for the case to be heard at SOAH.
- Settlement. The parties can settle at any point after the case is assigned to an attorney. A settlement is written up as a Compromise and Settlement Agreement that ends the case.
- SOAH hearing. An administrative law judge hears the case in person or decides it on written submissions. The taxpayer generally has the burden of proving the assessment is wrong.
- Proposal for decision. The judge issues a written proposal. The Comptroller then renders the final decision.
After the Comptroller's decision
A motion for rehearing is generally required before going to court, and the time to file it is short. Court challenges are brought in district court in Travis County, traditionally as a protest suit or a refund suit, both of which require payment of the tax. Texas law also now permits, under conditions, a suit after a redetermination decision without full prepayment. Which route fits, and what must be preserved in the administrative record to use it, should be decided before the SOAH hearing, not after.
What happens if you do nothing
The determination becomes final 60 days after the statement date. Payment is due within 10 days after that, and an additional 10 percent penalty is added to any amount not paid. The account then moves to collection: liens, bank freezes and levies, permit suspension, and personal liability assessments against owners and officers.
Jeopardy determinations
If the Comptroller believes collection is at risk, it can bill the audit as a jeopardy determination. Payment is due immediately and the determination becomes final in 20 days, not 60. These are rare, and they leave almost no time to respond.
When a lawyer matters
A redetermination is a contested case under the Texas Administrative Procedure Act. The statement of grounds frames the issues for everything that follows, the position-letter stage is where most cases are resolved, and the SOAH record is what a court will review. A non-lawyer can represent a taxpayer in the administrative process. Only an attorney can take the case to court, and only communications with an attorney are privileged.
Official sources
The rules described on this page come from these primary sources. Check them, or the notice you received, for current figures and dates.
When to call
Get the notification reviewed now if:
- You received a Texas Notification of Audit Results or Notification of Exam Results.
- The final date on the notification is fewer than 30 days away.
- You already filed a statement of grounds and received a position letter.
- The Comptroller rejected your statement of grounds as late or incomplete.
- Your refund claim was denied.
- The audit was billed as a jeopardy determination.
Common questions
Direct answers.
How long do I have to request a redetermination hearing in Texas?
Your written request and statement of grounds must be received by the Comptroller on or before the date the determination becomes final, which is 60 days after the statement date on the Texas Notification of Audit Results. A jeopardy determination becomes final in 20 days.
Do I have to pay the assessment to get a hearing?
Not for a redetermination hearing requested on time. Interest continues to accrue on whatever tax is ultimately found to be due. If you miss the deadline, you generally must pay the full liability and then request a refund hearing.
What must a statement of grounds include?
It must list the items in the audit you disagree with, individually or by category, and state the factual basis and legal grounds for your position. If you dispute the Comptroller's interpretation of the law, you must cite legal authority. It must be signed, and a representative must include a power of attorney.
What is SOAH?
The State Office of Administrative Hearings is an independent Texas agency whose administrative law judges hear contested tax cases. After the hearing, the judge issues a proposal for decision, and the Comptroller issues the final decision.
Can a Texas tax case be settled?
Yes. After a case is assigned to a Comptroller attorney, the parties can agree to a Compromise and Settlement Agreement at any time. After a case has been referred for a formal hearing, settlement can also be requested through the Comptroller's settlement officer.
Can I go to court after the Comptroller's decision?
Yes, in district court in Travis County, after exhausting the administrative steps, which generally include a timely motion for rehearing. Most court routes require paying the tax first. The Comptroller's own guidance recommends consulting a private attorney immediately if you plan to sue.
Related problems
State tax problems tend to travel together.
Texas Franchise Tax
A missed franchise tax report can forfeit your company's right to do business and make its officers personally liable for company debts. It is usually fixable.
Read more →Personal Liability for Business Taxes
Sales tax you collected belongs to the state. If the business does not pay it over, Texas can come after the person who controlled the money.
Read more →Comptroller Liens, Freezes & Levies
The Comptroller can freeze a bank account for 60 days and levy it at any point in that window, without going to court. The account freeze is usually the first time an owner takes the debt seriously.
Read more →Texas Sales Tax Audit
The Comptroller audits four years at a time, tests a sample, and projects the error rate across everything. The sample and the records you produce decide the number.
Read more →Next step
Find the final date on the notification. Count backward from there.
Send the notification and the audit write-up. The first answer you get is how much time is left.