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[ 1.0 - Administrative Actions Unit (AAU) Functions ] [ 1.1 Default Notice ] [ 1.2 - Notice of State Tax Lien ] [ 1.3 - Freeze / Levy Procedures ] [ 1.4 - Vendor Hold / Lottery ] [ 1.5 - Installment Payment Proposal ] [ 1.6 - Court Order Court Cost ] [ 1.7 - Successor Liability ] [ 1.8 - Reclassification to Uncollectible ] [ 1.9 - Reimbursing Employers ] [ 1.10 - Debt Resolution ] [ 1.11 - Notice to Indian Tribes - HB 2029 ]
Chapter 1: Administrative Actions Unit	comments to: Regulatory Integrity Division - Collections

1.7 Successor Liability

[ 1.7.1 - Review for Successor Liability ] [ 1.7.2 - Action Taken ]

Section 204.086 of the Texas Unemployment Compensation Act provides for the pursuit of collection action against the successor to hold them liable for the debts of the predecessor.

Candidates for review of successor liability are obtained via the Employers Liable Under Section 204.086 Report or from a recommendation of a tax examiner.

1.7.1 Review for Successor Liability

Criteria must be met in order for collection action under Section 204.086 to be pursued.

1.7.2 Action Taken

Successor Liability Employers Default Notice is issued to the successor requesting payment of the predecessor's delinquency as well as their own debt and quotes Sections 204.086, 213.031 and 213.057 of the Texas Unemployment Compensation Act.
An assessment, as provided for in Section 213.031, is issued which reflects predecessor debt as well as their own debt. The assessment reflects liability incurred under Sections 201.022 and 204.086.
Upon an assessment becoming final and the Abstract of Assessment recorded with the county clerk's office, a Notice of State Tax Lien is issued, as provided for in Section 213.057 of the TUCA, and reflects the total delinquency now owed (both predecessor and their debt). The tax lien will not properly produce reflecting both accounts' debts and must be typed to include such. Release of Notice of State Tax Liens and Abstracts of Assessment/Abstract of Judgment for the successor will not be issued until both accounts are paid in full.
Notice of Freeze/Notice of Levy as provided for in Section 213.059 of the TUCA are issued for the debts of both accounts. Same as tax lien, the freeze/levy will not produce reflecting the debts of both accounts and must be retyped prior to mailing.

Texas Workforce Commission | Unemployment Tax

Last Revision: July 21, 2009

Chapter 1: Administrative Actions Unit

1.7 Successor Liability

1.7.1 Review for Successor Liability

1.7.2 Action Taken