2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle B - Enforcement and Collection › Chapter 111 - Collection Procedures › Subchapter A. Collection Duties and Powers › Section 111.012. Security for the Payment of Taxes

Sec. 111.012.  SECURITY FOR THE PAYMENT OF TAXES.  (a)  If the comptroller finds that a tax imposed by this title is insecure, the comptroller may require a taxpayer to:
(1)  provide security for the payment of taxes;  or
(2)  establish a tax escrow account at a bank or other financial institution.
(b)  The security may consist of:
(1)  a cash deposit filed with the comptroller;
(2)  a surety bond;  or
(3)  other security as permitted by the comptroller.
(c)  The amount and form of the security shall be set by the comptroller, except that the amount may not be more than double the amount of taxes that the comptroller estimates will be due from the taxpayer during the succeeding 12 months.
(d)  The comptroller shall give notice to a taxpayer from whom security or the establishment of a tax escrow account is required under this section.
(e)  The tax escrow account must be established not later than the 10th day after the date notice is received from the comptroller requiring the establishment of the account.
(f)  Before the comptroller requires a taxpayer to establish a tax escrow account, the comptroller must determine that:
(1)  the taxpayer remitted or should have remitted a monthly average of $500 or more in tax collected from customers for the six-month period preceding the date that the notice requiring the establishment of a tax escrow account is sent by the comptroller to the taxpayer;  and
(2)  the taxpayer:
(A)  failed to file two or more tax returns during the 12 months preceding the date that the notice requiring the establishment of a tax escrow account is sent by the comptroller to the taxpayer;
(B)  has been issued a jeopardy determination under Section 111.022;
(C)  has previously been determined to have collected tax but not remitted that tax under an administrative hearings decision issued by the comptroller;
(D)  is insolvent because the taxpayer's liabilities exceed the taxpayer's assets or the taxpayer is unable to pay the taxpayer's debts as they become due;
(E)  has assets that are subject to a court administered receivership;  or
(F)  has been notified that security is required under this section but has failed to provide evidence of the security on or before the 30th day after the date the security was requested.
(g)  If a taxpayer does not furnish security to the comptroller or establish a tax escrow account as required by the comptroller before the expiration of 10 days following the day on which notice is received, the comptroller may:
(1)  bring suit in a district court in Travis County for an order enjoining the taxpayer from engaging in business until the security is furnished or the tax escrow account is established;  or
(2)  pursue any other remedies or collection actions available to the comptroller under this chapter or Chapter 113 to ensure the security is furnished or the tax escrow account is established.
Acts 1981, 67th Leg., p. 1503, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1991, 72nd Leg., ch. 483, Sec. 1, eff. Sept. 1, 1991;  Acts 2003, 78th Leg., ch. 209, Sec. 14, eff. Oct. 1, 2003.