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A clearance certificate confirms that all tax liabilities of an individual or entity have been paid. The certificate is applicable upon the sale of a business, transfer of ownership, or the death of an individual.
It contains information required to be disclosed by Section 5.008 of the Texas Property Code regarding material facts and the physical condition of the property. Contracts, Forms Applications, Other Forms, Real Estate Sales Agent, Real Estate Broker Individual, Business Entity Broker.
Each taxable entity formed as a corporation, limited liability company (LLC), limited partnership, professional association and financial institution that is organized in Texas or has nexus in Texas must file Form 05-102, Texas Franchise Tax Public Information Report (PIR) annually to satisfy their filing requirements.
Tax Clearance Letter for Reinstatement An entity reinstating its certificate or registration with the Texas Secretary of State must provide a tax clearance letter showing that all franchise taxes have been paid.
Each entity on the Affiliate Schedule indicated as an entity other than a Corporation or LLC needs to file an Ownership Information Report (OIR) (Form 05-167).

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The Comptroller will consider issuing a private letter ruling when taxability guidance in statutes, rules or other controlling authorities does not exist or is not clear.
A tax clearance certificate is a document issued by a state government agency, usually the department of revenue. It certifies that a business or individual has met their tax obligations as of a certain date.

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