[ 2.3.1 - Verify Criteria & Liability ] [ 2.3.2 - Check Stops ] [ 2.3.3 - Check Comments ] [ 2.3.4 - Check Payments ] [ 2.3.5 - Check for Bank Freeze ] [ 2.3.6 - Check Address ] [ 2.3.7 - Check Tax Lien ] [ 2.3.8 - Check for Successor Liability ] [ 2.3.9 - Check for Bankruptcy ] [ 2.3.10 - Check for Accting Problems ] [ 2.3.11 - Check Status Master Record ] [ 2.3.12 - Check Total / Taxable Wages ] [ 2.3.13 - Check Estimated Wages ] [ 2.3.14 - Identify All Liable Entities ] [ 2.3.15 - Inclusion of Spouse ] [ 2.3.16 - Obtain Charter Information ] [ 2.3.17 - Inclusion of Liable Officers ] [ 2.3.18 - Wilburn Quarters ] [ 2.3.19 - Verify Default Notices ] [ 2.3.20 - Update the Delinquency Names/Addresses screen for FL-39B Production ] [ 2.3.21 - Day 91 Production (FL-39B & FL-39BOL) ] [ 2.3.22 - Returned Mail ] [ 2.3.23 - Address Searches ] [ 2.3.24 - Update the Delinquency Names/Addresses screen for C-18 Production ] [ 2.3.25 - Corporations ] [ 2.3.26 - Sole Proprietors & Officers ] [ 2.3.27 - Partnerships ] [ 2.3.28 - Limited Partnerships & Limited Liability Partnerships ] [ 2.3.29 - Add Long Names to the Delinquency Names/Addresses screen ] [ 2.3.30 - Day 119 Production (C-18) ] [ 2.3.31 - Create Assessment Folders ] [ 2.3.32 - Produce Process Server List ] [ 2.3.33 - Delete Assessment Records ] [ 2.3.34 - Distribution of Folders ] [ 2.3.35 - Injunction Action Candidates ] [ 2.3.36 - Deceased Employer ] [ 2.3.37 - Reimbursing Accts ] [ 2.3.38 - Successor Liability Assessments ] [ 2.3.39 - Establish Successor Liability Comments ] [ 2.3.40 - Bad Address Report ] [ 2.3.41 - Reissuing Assessments ] [ 2.3.42 - Statutes That Appoint the Secretary of State Agent for Service of Process ]

Section 213.031 of the Texas Unemployment Compensation Act (TUCA) states that if after notice an employer does not pay a contribution or a penalty or interest on a contribution, the Commission may collect the amount due by serving a notice of assessment on the defaulting employer, stating the amount of contribution, penalty, and interest outstanding.

The assessment process begins at Day 49 in the Automated Collection Action Program (ACAP) with the Tax system identifying accounts eligible on a daily basis. Accounts may also be referred from Administrative Actions and Special Actions Units and by a field recommendation.

All corporate accounts eligible for assessment action are identified on the Day 49 List and an electronic request is transmitted for the Status folder to be forwarded to 4995. All remaining accounts, including corporate accounts, are identified on the Day 84 List and the Status folders not already in the unit’s possession are manually requested.

When the Status folders are distributed to the accounts examiner, the examiner will check the account to verify that active indebtedness meets the current monetary assessment criteria by viewing the detail summary and master record screens.

The examiner should verify that liability is good, as determined by one of the following:

• Status Report (C-1) is signed by the sole proprietor, partner, or corporate officer. If signed by any other individual or representative, a power of attorney must be attached.
  
  
• Field examiner has contacted an owner, partner, or authorized representative and verbally verified ownership and liability and verbally confirmed employer's name and business styling and documented it on the field tax comments screen.
  
  
• Field examiner has conducted an audit, signed the Status Report, and provided an affidavit.
  
  
• Quarterly Report (Form C-3) for period of liability has an acceptable signature as detailed above and shows $1,500.00 in wages.

If liability cannot be proven by at least one of the above, place a Code 25 Stop on the account and send a field assignment to secure good evidence of liability before proceeding with the assessment process. Place a 30-day trace on the file via tax folder accounting and tracing system screen.

If the account was established electronically via the Internet, there will be no hard copy Status Report. Review the registration process and verify that no flaws exist in the process and verify that no gaps exist in the information provided. If not, proceed with the information provided to us. Copies of Quarterly Reports and checks may be available and may provide evidence of liability. Assignments for field examiners to obtain a Status Report will not be routinely made.

Check the stop information screen for any action that may prevent the assessment from occurring. If a field stop is in place but it appears inappropriate, contact the field examiner responsible for the account and inquire why the stop is in place.

• Stop 14 for Payment Plans should be questioned if payments do not keep the account ahead of statute, if statute or uncollectible quarters exist, or if recent payments have not been received.
  
  
• Stop 28, Payment Promised, placed for more than 30 days and Stop 03, Accounting Problem, with no comments are other stops that may make it necessary to contact the field examiner.
  
  
• If some quarters are approaching statute and there is a stop on the account, contact the responsible field examiner and determine if the assessment should be continued. Quarters in danger of being lost to statute necessitate an urgent need for assessment and should be brought to the attention of the unit supervisor.

Check delinquency and field tax comments screens to see if there are any comments regarding possible payment plans, Rule 13 hearings, etc., that may preclude assessment action. If there is such a comment and no stop has been placed on the account, contact the responsible examiner to determine if a stop is appropriate.

Check the Cash Journal screen to see if any payments are being made in a regular manner or if a recent large payment has been made. If so, contact the examiner responsible for the account and determine if a stop should be placed on the account.

Check the cash journal and delinquency action history screens to see if a payment (personal check) has been received since the last bank freeze was filed. If so, send the file to 4985 for a freeze/levy and request that the file be returned in time to prepare for the next action day in ACAP.

Check the master record screen for the billing code and the Status folder and delinquency and field tax comments and the transaction log for returned mail to determine if the address of record appears to be correct. On non-corporate entities, if the billing code is "O" or if there is returned mail, searches should be conducted and/or an assignment should be sent to the field requesting a new address or the placement of Code 05 Stop until a new address can be located. If a field assignment is made the file can be returned to Records Management Center (RMC) at this time and a 30-day trace established. (Note: Unclaimed or refused mail is considered good notice.)

Check the lien, judgment, and assessment recording screen to verify that a tax lien has been filed. If no tax lien exists, the file should be forwarded to 4984 for a tax lien with a request to return the file as soon as possible. If liens need to be filed in additional counties, they should be requested after the assessment is issued.

Check the master record screen to see if the account is a successor to another account and if successor liability action is necessary.

• Predecessor and successor delinquencies must total the current monetary criteria when added together.
  
  
• Total acquisition must have occurred.
  
  
• Acquisition date must be within statute.
  
  
• All predecessor debt, regardless of statute, should be assessed against the successor if the acquisition date is within statute, but only successor debt within statute should be assessed.
  
  
• If criteria is met, the predecessor file should be requested and both files sent to 4983 for a successor liability default notice, if one has not already been sent.
  

Check the delinquency and field tax comments screens and delinquency summary and fiduciary record screens and examine the Status folder for any mention of bankruptcy. If there is a question regarding bankruptcy, forward the file with a bankruptcy information request form to the Special Actions Unit (SAU) supervisor to determine if there is a bankruptcy. Bankrupt entities cannot be assessed without SAU approval and require special bankruptcy default notices. Non-bankrupt partners or officers should be assessed separately even if the partnership or corporation is in bankruptcy. Late payment interest may need to be updated on the Notice of Assessment (C-18) for the non-bankrupt employer when a fiduciary record is established on the account.

Check the master record, delinquency detail, and delinquency summary screens to make sure no accounting problems exist (liability dates, reports, etc.) If any error is detected, place a Code 03 Accounting Problem Stop on the account, and send the file to the appropriate examiner to be corrected and request the file be returned as soon as possible.

Check the Master Record screen and examine the Status folder to ensure the account is established correctly (name, entity type, liability type.). If any error is detected, place a Code 25, Employer Inquiry Stop on the account, and send the file to Status Section to be corrected and request the file to be returned as soon as possible.

Check the ERA information (wage recap) screen for discrepancies in total and taxable wages for delinquent years currently being assessed. View the history of the ERA information screen to see if all quarters have the same total and taxable wages and if the delinquent quarters adhere to the account's history.

Check the total number of employees and the total wages. If the total number of employees times the maximum taxable wage per employee does not equal approximately the total taxable wages listed, check the benefits wage detail screen to see if taxable wages have been reported correctly per employee. It may be necessary to order copies of Quarterly Wage Reports (C-3's and C-4's). Check that owner's and/or partners' wages are not being reported.

If errors are found, document the corrections needed on screen printouts and place a Code 03 Stop through the next ACAP action date on the account. A comment stating that the account is being referred for an audit of possible adjustments should be established, and the printouts should be sent to the appropriate examiner for the corrections and employer notification. Request that the auditing examiner notify you when the correction is complete.

Check the ERA information screen to see if it reflects that a delinquent quarter eligible for assessment has been estimated. ("E" is not always reflected on this screen.) View the history of this screen to determine if the estimated quarter is based on the history of the account. If it does not reflect the history of the account and there are no comments on the comments screen explaining the estimation, review copies of quarterly reports, the field transmittal memo, and any other pertinent documents listed on the transaction log that may offer an explanation of the method of the estimation.

If a possible error is observed, give the employer folder and all documents ordered to the unit supervisor for review and referral to Field Tax Operations for further field investigation and correction. A Code 03 Stop should be placed through the next ACAP action date and comments stating that the account is being referred to Field Tax Operations for a review of estimated quarters should be established. Field Tax Operations will notify us when their review is complete.

Review the employer folder and the Tax system to determine the correct entity type and all liable entities. Complete names should be used for individuals, partners, and officers.

If any documents or comments indicate that a spouse has been involved in the business and the account is established as an individual account, it must be determined if the spouse should be included in the assessment action.

• If the signature on the C-1, C-3, check, or correspondence pertaining to the account is different from the employer name and the person signing is using the title "owner" or "co-owner", and appears to be the spouse, assessment action should also be taken against the spouse. A tax lien should be requested on the spouse immediately following assessment production.
  
  
• If a bankruptcy styling lists the names of the husband and wife followed by a DBA (doing business as), both spouses should be assessed.
  
  
• If comments indicate that a spouse might be involved in the operation of the business, an assignment to the field examiner responsible for the account should be made to determine if the spouse is involved. Place a Code 25 Stop on the account and set up a 30-day trace to give the field time to respond. An amended status report should be obtained if spousal liability exists and the spouse has not signed any documents in our file. If a spouse is included in the assessment action based on comments on the Field Tax Comments screen, make a printout of those comments and place it in the assessment folder.
  
  
• If a tax lien has not been filed on the spouse and the spouse is being included in the assessment action, complete a Tax Lien Request Form and place it in the assessment file. A tax lien should be requested on the spouse after the assessment is final.

If the account is a corporation, professional corporation, professional association, limited liability company, limited partnership, or limited liability partnership, charter or partnership information must be obtained from the Secretary of State (SOS) via Internet access. See the Secretary of State User's Guide for instructions on accessing that system.

If copies of limited partnership agreements or limited liability partnership agreements are necessary, they may also be requested via telephone call to the SOS.

• Using the Secretary of State (SOS) Internet access, determine the correct styling of the name of the entity and the charter number, officer information or general partners information, any former names, the history record, and any assumed names. A printout of each of these screens should be obtained and placed in the assessment folder. Write the date and your initials on the printout.
  
  
• After obtaining the charter number for corporations, professional corporations, and limited liability companies, the Comptroller Data Bank must be accessed to determine if a forfeiture of corporate privileges occurred and if officer liability exists. Printouts of these screens should be made for all periods of officer liability. See the Franchise Tax User's Guide for instructions on accessing that system.
  
  
• Add the corporate information to the Tax system by accessing the Corporation Data Maintenance screen and keying the corporate charter data and periods of officer liability. This information will display on the Corporate Data Inquiry screen the next day.

If a forfeiture of corporate privileges has occurred and the indebtedness incurred on the account from the due date of the franchise tax report to any revival or reinstatement date meets the current monetary criteria, officer liability is involved and assessment action will be taken against the liable officers, directors, and/or managers.

• Examine the Status Report (C-1) and the officer information obtained from the Secretary of State to determine the liable officers and complete an Officer Liability Worksheet.
  
  
• Review Quarterly Wage Reports (Form C-3's) for the officer liability periods to determine if there are any additional signatures of entities not indicated on the C-1 or the SOS information.
  
  
• If a discrepancy in officers on these documents exists, place a Code 25 Stop on the account and make a field assignment to determine the liable officers/directors and their current addresses. Place a 30-day trace on the file.
  
  
• If statute quarters are involved, continue with assessment action on the corporation prior to sending the field assignment.

As officer liability dates usually fall within a quarter, it must be determined whether or not the quarter should be included in the assessment. Under the Wilburn ruling, the officer is only liable from the date the franchise tax report is due until the date the franchise tax report is mailed and/or the payment date of the franchise tax, whichever is the latest.

• The date of liability is determined and the number of Fridays (paydays) in the quarter are determined. If the quarter has thirteen (13) Fridays and six (6) fall after the report is due, the officer is liable for 6/13th of the delinquency. For the quarter to be included, the officer liability portion of the quarterly delinquency must total the current monetary criteria. If the quarter falls below the current monetary criteria, it is not included in the assessment.
  
  
• This holds true also for revival and charter reinstatement dates. The total amount of Fridays prior to the revival or charter reinstatement date divided by the total number of Fridays in the quarter times the total delinquency must equal the current monetary criteria to include that quarter in the officer liability delinquency.
  
  
• If it is determined that a Wilburn quarter is to be included in the assessment, a Wilburn payroll letter must be mailed to the corporation and each officer requesting a breakdown of wages paid for the quarters in question. Each officer's letter must include the name of the corporation for which we are seeking information in case the officer is involved in more than one corporation. The letter should be mailed to any possible address used for the corporation and the officers. Place a 30- day trace on the file for a response.
  
  
• If an answer to the Wilburn letter is not received, the examiner must determine the amount owed by the officers by using the previously mentioned estimate of paydays in the quarter. The officer liability default notice should include the officer liability portion of these Wilburn quarters. When ordering the Notice of Assessment (Form C-18), a manual request should be keyed specifying the quarters to be included and then the C-18 will be manually typed to reflect the correct officer liability portion of these Wilburn quarters.
  
  
• If an answer to the Wilburn payroll letter is received, the examiner must determine if the wages listed by the officer or corporation approximate the wages shown on the Tax System screen.
  
  
• If they do not, an assignment should be sent to the field to audit the records of the corporation and a 60-day trace placed on the file.
  
  
• If wages reflected on the response to the Wilburn letter approximate the wages on the Tax System screen, the examiner must determine the amount of taxable wages and taxes due. To do this, the examiner needs to add the wages as listed during the delinquency period. A ratio of the total wages and taxable wages is determined and multiplied by the total wages listed on the Wilburn payroll letter. This gives the amount of taxable wages. This amount is multiplied by the tax rate to determine the contribution due. Late payment interest and late reporting penalties also need to be calculated when the tax amount is determined.

Verify that current default notices (DN) have been sent to all parties to be assessed and that officer liability default notices have been sent to all officers to be assessed.

• A default notice is current if it notifies the employer of at least a portion of the debt that currently exists and whose delinquency begins no later than the earliest quarter to be assessed. Each party to be assessed should have been mailed a current default notice at the address of record. Legal entities, other than persons, have received good service of the default notice even if the mail is returned undeliverable. Any person, including sole proprietors, partners, or officers must have mail delivered successfully, or returned marked refused or unclaimed in order for good service of the default notice to be achieved. Verify that liable spouses of sole proprietors have been mailed default notices.
  
  
• If any entity has not been defaulted and no tax lien has been filed against him, request a standard default notice be sent and that a tax lien be filed. Tax liens are not filed on officers until after the assessment on that officer becomes final.
  
  
• Any entity (excluding officers when officer liability exists) that has a judgment or final assessment against him does not need another default notice sent to him unless the entity is coming out of bankruptcy proceedings. Following the conclusion of a bankruptcy, a special default notice may be needed and the file should be forwarded to the Special Actions Unit to determine the proper default notice. Attach the default notice worksheet to the folder with the proper styling and request a bankruptcy default notice.
  
  
• If a bank freeze is currently pending on an account, do not request a default notice until the bank freeze action is concluded.

When a determination is made that good default notices have been mailed, the addresses need to be added to the Delinquency Names/Addresses screen or the address needs to be marked for FL-39B or FL-39BOL designations via the delinquency name/addresses maintenance screen.

• Individuals and each partner should receive a FL-39B at the address of record and at the service address(es).
  
  
• All other type entities need only receive a FL-39B at the address of record.
  
  
• If officer liability exists, each liable officer should receive a FL-39BOL at the service address.
  

For any individual, partner or officer, good notice is achieved through delivery, or non-delivery if the notice is returned "unclaimed" or "refused".

Assessment Warning Letters, 39B or FL-39BOL, are produced automatically at Day 91 of ACAP or when manually requested via CAU letter request. Manual requests will accelerate ACAP to Day 91 and may occasionally be necessary.

• If all verification for addresses and inclusion in Delinquency Names/Addresses screen is not accomplished prior to Day 91, the FL-39B will produce to the address of record, and the address needs to be checked for accuracy. If the document has a wrong address, a payment has been received, a bankruptcy has been filed, a stop has been placed on the account, or no default notice has been mailed, do not mail the FL-39B. Mark the original FL-39B "not mailed" and place it in the Status folder.
  
  
• If there has not been a default notice mailed or good notice has not been accomplished, a request for a default notice should be made. In most cases an acceleration of action should be accomplished, so the default notice should have a 5-day pay by date. Use the default notice request form to request the DN, and be sure to include every address where the DN should be mailed. After the DN has been mailed, wait until after the pay by date and manually request the FL-39B's or FL39BOL's. This request will reset ACAP to Day 91.
  
  
• After all preliminary steps have been taken, the FL39B's or FL-39BOL's have been mailed on Day 91, and Delinquency Names/Addresses have been updated for Notice of Assessment (C-18) production, the account is set aside to await the production of the notice of assessment, C-18, on Day 119. By placing the file in a cabinet by expected production date, a check can be made for each file as the date arrives.
  
  
• If statute quarters are involved, acceleration of the assessment action may be required. If the assessment will not produce in time to toll the statute, the notice of assessment should be manually requested via the Notice of Assessment/Abstract/Execution Request.

If a default notice or FL-39B or FL-39BOL is returned marked "not at address", "not deliverable as addressed", or any other notation that indicates the service address is incorrect, action should be stopped until a good address can be found. If the account is other than an individual account and statute quarters are involved, proceed against the entities that can be located.

Various actions can be taken to locate an employer. The initial action should be to place a Code 25 Stop for 30 days and send an assignment to the field to locate a new address and to extend your stop and to maintain the stop until a new address has been found.

Prior to sending the field assignment, a check of the Wage Record and Claimant History screens should be done to give possible leads to the field. This can only be done if the social security number (SSN) of the individual is known. A name search and SSN search through the Employer Master File may also prove helpful in producing a new address. Credit Agency and DPS searches may also be in order at this time.

After the assignment is mailed, place a 60-day trace to check the progress of the assignment. If the SSN is available, you may request the name and the date of birth associated with that SSN from Record Management Center. After this information is obtained, a DPS check using the date of birth may be more productive than a DPS check performed without the date of birth.

Prior to setting the folder aside for the production of the C-18, Notice of Assessment, verify that the information needed in the Delinquency Names/Addresses screen is correct for the proper production of the document. The name(s) and address(es) for the assessed entity(ies) should be established in an active record marked for C-18 usage. As the information in the Delinquency Names/Addresses screen is to be printed on the assessment document, the styling of the name and address should conform to our standard of legal styling.

When it is necessary to match a specific active short name to a specific active long name on the notice of assessment, you must assign the same SSN number to the short name and the long name that should be matched together on the notice of assessment.

Corporate names (this includes corporations, professional corporations, professional associations, and limited liability companies) should be entered in the Delinquency Names/Addresses maintenance screen exactly as they appear with the Secretary of State. Also include any prior names (fka) or assumed names (aka) or any dba's listed on the other names/addresses screen or on the C-1 or on checks. Enter the address of record in the address lines of the Delinquency Names/Addresses maintenance screen. Note: do not use the dba line, as it will not display on the assessment. It is reserved for the statement "by delivering to".

Examples:

Corporation
NAME-1: XYZ, Inc., fka XYZ Corp.,
NAME-2: aka XYZ Company, dba Joe's Painting
DBA: Blank (Do Not Use - Will Not Print On Assessment)
ADDR-1: Address of Record
ADDR-2: Address
CITY: ST: ZIP:

Professional Corporation
NAME-1: XYZ, P.C., aka ABC, P.C., dba Joe's Accounting Service

Professional Association
NAME-1: XYZ, P.A., fka ABC, P.A., dba Joe's Medical Center

Limited Liability Company
NAME-1: XYZ, L.L.C., aka ABC, L.L.C., dba Joe's Painting

Any formerly known as, fka's, are listed prior to any also known as, aka's, in reverse chronological order, followed by the aka's, and followed by the doing business as, dba's. This is the complete corporate name.

If the complete corporate name will not fit into name lines one and two (35 character per line) of the Delinquency Names/Addresses maintenance screen, do not set up a the Delinquency Names/Addresses record marked for C-18 usage. The account will edit from the assessment cycle at Day 119 if no address is marked for C-18.

After the account edits at Day 119, request a blank C-18 document by using the Notice of Assessment/Abstract/Execution request screen and requesting transaction type "3". The C-18 will produce in the next run and the name shall be manually typed on the document to include the complete corporate name.

If the complete corporate name will fit on name lines one and two of the Delinquency Names/Addresses maintenance screen (this information will print in the "To" portion of the C-18), mark the record for C-18 usage and "corporation" category. Then add a record marked for C-18 usage with the category "Reg Agent". The registered agent's name and address should be entered exactly as it is shown in the Secretary of State records. This name and address will produce in the "To" portion of the C-18 as the service party. (If a record for the "registered agent" category is not established in the Delinquency Names/Addresses screen, the service party will default to the Secretary of State.

Registered Agent Record
NAME-1: John Doe (R.A. exactly as listed with SOS)
NAME-2: Blank
DBA: Blank
ADDR-1: Registered Office Address (exactly as listed with SOS)
ADDR-2: Address
CITY:ST:ZIP:

Even though we may know that the registered agent's name and/or registered office address as listed with the Secretary of State is incorrect, service must be attempted on the registered agent name and address exactly as reflected in the Secretary of State records.

For individuals and officers, an active Delinquency Names/Addresses record with the complete name and the correct address for service should be marked for C-18 usage. (Dba's are not used on individual accounts except when the spouse is being included in the assessment.)

The complete name is the employer's entire legal name, or as much as is known, with notations of "aka" indicating any other names the employer may go by. A careful examination of the file is necessary to check for complete names, such as credit reports, bankruptcy petition, or signed checks. A record is established in the Delinquency Names/Addresses screen for the individual or for each officer as follows:

Example:
NAME-1:John Doe, aka Jerry Doe
NAME-2: (use as needed)
DBA:Blank
ADDR-1:Service Address
ADDR-2:Address
CITY:ST:ZIP:

When including a spouse in the assessment action, a record should be established in the Delinquency Names/Addresses screen for each spouse marked for C-18 usage with the category "other".

Examples:

NAME-1: John Doe, dba	NAME-1: Jane Doe, dba
NAME-2: XYZ Company	NAME-2: XYZ Company
DBA: Blank	DBA: Blank
ADDR-1: Service Address	ADDR-1: Service Address
ADDR-2: Address	ADDR-2: Address
CITY: ST: ZIP	CITY: ST: ZIP

If the entire name cannot be entered on name lines one and two (35 characters per line) of the Delinquency Names/Addresses maintenance screen, do not mark for C-18 usage. When the edit occurs on Day 119, order the C-18 via the Notice of Assessment/Abstract/Execution request screen without name.

When an individual lives out of state, service must be accomplished on the Secretary of State. The C-18 should be rubber-stamped with "by delivering to" stamp beside the name, followed by the "Secretary of State" stamp after C-18 produces. An attachment is placed on the C-18 stating that service is to be accomplished on the Secretary of State in accordance with Section 17.044 of the Texas Civil Practice and Remedies Code.

For partners, the entire name of each partner should be used, as well as the name(s) of any dba's. Because the partnership and each partner should be served, the styling of the address used for the C-18 differs from the others:

Examples:
NAME-1: XYZ Company and
NAME-2: John Doe, A Partner
DBA: Blank
ADDR-1: John Doe, A Partner
ADDR-2: Service Address
CITY: ST: ZIP:

NAME-1: XYZ Company and
NAME-2: James Dunn, A Partner
DBA: Blank
ADDR-1: James Dunn, A Partner
ADDR-2: Service Address
CITY:ST: ZIP:

If the partnership name and the partner's name will not fit into name lines one and two (35 characters per line) of the Delinquency Names/Addresses screen, do not mark for C-18 usage. Blank documents can be ordered at Day 119 edit.

Line three (3) should always be blank when the Delinquency Names/Addresses screen record is marked for C-18 usage. Line four (4) repeats the partner's name and title.

After the C-18 produces, use rubber stamps to stamp the words "by delivering to" after the entry on line two (2) and "and individually" after the entry on line four (4).

If more than one partnership name (DBA) is involved, one partnership name should be used with each partner. If there are more partners than DBA names, re-use DBA names. If there are more partnership names than partners, use the following styling for any extra partnership names:

Example:
NAME-1: XYZ Company (by delivering to)
NAME-2: John Doe, a Partner
DBA: Blank
ADDR-1: Service Address
ADDR-2: Address
CITY: ST: ZIP:

This styling prevents a partner from being served individually more than once, but covers all partnerships under the assessment.

In a Limited Partnership and a Limited Liability Partnership, the general partner(s) is/are served. In most cases the entire name of the limited partnership or the limited liability partnership will not fit into the required field of the Delinquency Names/Addresses screen, and the C-18 should be ordered blank. Styling is as follows:

Example:
NAME-1: XYZ, Ltd., (or L.L.P.) and
NAME-2: John Doe, General Partner (By Delivering To)
DBA: Blank
ADDR-1: John Doe
ADDR-2: Service Address
CITY: ST: ZIP:

Long names are added for all entities except individuals by using the Long Delinquency Names Maintenance screen (70 characters per line - two "name" lines) and selecting "Assessment" usage. No addresses are entered on this screen. The long name will produce on the C-18 in the "Assessed Employer/Parties" line. If no long name marked for assessment usage is entered, the name established via the Delinquency Names/Addresses maintenance screen screen marked for C-18 usage will be used in the "Assessed Employer/Parties" and the "To" lines on the C-18.

Corporation; professional corporation; professional association; and limited liability company (name and the designated state of incorporation as listed with the Secretary of State):

FKA's are prior chartered names, aka's are assumed names listed with the Secretary of State, and dba's are business names from C-1, checks, or other documents in file. Fka's are listed prior to "A Texas Corporation" and aka's and dba's are listed following the statement "A Texas Corporation" (or other appropriate entity designation).

Examples:

Corporation
NAME-1: XYZ, Inc., fka XYZ Corp., A Texas Corporation
NAME-2: aka XYZ Company, dba Joe's Painting

Professional Corporation
NAME-1: XYZ, P.C., A Texas
NAME-2: Professional Corporation, aka ABC, P.C., dba Joe's Accounting Service

Professional Association
NAME-1: XYZ, P.A., fka ABC., P.A., A Texas
NAME-2: Professional Association, dba Joe's Medical Center

Limited Liability Company
NAME-1: XYZ, L.L.C., A Texas
NAME-2: Limited Liability Company, aka ABC, L.L.C., dba Joe's Painting

Officers on Officer Liability Assessments:
NAME-1: John Doe, Individually An As
NAME-2: Officer/Director Of XYZ, Inc., A Texas Corporation

Partnerships (Partnership name [s] followed by each partner's name):

Example:
NAME-1: XYZ, A Texas General Partnership, and John Doe
NAME-2: Individually And As A Partner

Limited Partnerships and Limited Liability Partnerships (name as registered with the Secretary of State followed by designated state of filing and the general partners)

Examples:
NAME-1: XYZ, Ltd., A Texas Limited Partnership, and
NAME-2: John Doe, General Partner

NAME-1: XYZ, L.L.P., A Texas Limited Liability Partnership, and
NAME-2: John Doe, General Partner

The C-18, Notice of Assessment, is automatically produced and the assessment record screen, is established at Day 119.

• If the C-18 does not produce on the proper day, check the Delinquency Summary screen to determine the day in ACAP as an error may have been made in determining the production date. Check the Stop Information screen to see if a stop has been placed on the account. Check the Cash Journal screen to see if payment has been received and the Transaction Log screen to see if an adjustment report has been received.
  
  
• If the C-18 produces on the scheduled day, examine the document to ensure that all information is correct as to the long name on the "Assessed Employer/Parties" line, the "To" line, and the service address.
  
  
• Check to see if additional quarters have posted to the account, if a new address has been supplied, if payments have been made to the account, or if any other reason to stop assessment action has appeared. If none are found, the assessment should be placed on a list for the process server for service.
  
  
• If there is a current pending, unserved assessment for prior debt in the process server's hands on an entity, contact the process server to determine the status of that assessment. It may reveal that the address on the new assessment is no longer good and a search may be necessary before proceeding.
  
  
• Prepare an attachment to the C-18 to provide the process server with any additional service addresses, if warranted and if the addresses are in the same county.
  
  
• Set up any comments as deemed appropriate, such as officer liability or successor liability comments.

Standard officer liability comments are as follows:

Assessment No. _________ is for officer ________ * and includes Q-YY, which has been prorated per Wilburn. *Officer assessment record per Tax system is incorrect. State Office Assessment file is necessary for officer liability payoff.

*If appropriate.

Order labels to be affixed to the goldenrod folders that are used for assessment folders. The labels should be ordered by accessing the name/address label screen and keying in the account number and pressing enter. The account name and number of labels will appear. Verify this is the correct account name and change the number of labels to one (1) and press PF6. The label will produce in the next day's run.

When the labels arrive, they should be verified and placed on a goldenrod folder. One copy of the C-18 and the tax liens (original or file copy) should be placed in the goldenrod (assessment) folder. FL-39B's or FL-39BOL's, officer liability default notices, and Wilburn payroll letters should also be placed in the assessment folder.

After all C-18's have been verified to be correct, paper clip three copies of the C-18's together. Produce a list of assessments in numerical order to be presented to the process server along with the C-18's.

The list and the C-18's should be given to the supervisor for review to ensure that the proper entities are included and to determine if there is any reason not to send the assessment to the process server. Any assessment that cannot be given to the process server should be deleted or corrected accordingly.

To delete the assessment record on assessment that will not be delivered to the process server, access the appropriate Notice of Assessment Maintenance screen and key "D" for delete. The assessment will be deleted in the next day's run. A copy of the deleted C-18 should be placed in the box provided for deleted assessments and the remaining three copies of the assessment should be destroyed.

After the assessments are delivered to the process server, delete any 4995 requests for the folder via tax folder accounting and tracing system and send the folder back to RMC, to tax lien for further tax liens, or any other department to complete requested action.

File the assessment folder (goldenrod colored) in the cabinet designated for filing under the date of production of the C-18. (See procedure for Maintaining Assessment Files)

Prior to releasing the folders, check to see if there is a need to take injunction action. If the account has a final assessment or judgment, the delinquency meets current monetary criteria the account is active with delinquency accumulating on current quarters, and no recent payments have been received, injunction action should be considered via a field assignment.

If it is determined during the assessment process that the employer is deceased, the following actions should be taken:

• If the account is due to hit Day 91 in ACAP cycle within the next 30 days, place a Code 20 Stop on the account with a release date one day after the projected Day 91.
  
  
• Send an assignment (EX-1) to the field to check on probate. Place copy of the memo in the Status file.
  
  
• Remove all traces and requests for Civil Actions Unit and return the file to RMC.
  

Special Actions Unit will receive a response from the field and will determine if an estate claim should be filed or if an uncollectible request should be made.

If the file is returned to Civil Actions Unit, still in ACAP, and the field response has not been received, send the file to the Special Actions Unit supervisor.

When assessing a reimbursing account, the styling of the name should be set up in the Delinquency Names/Addresses screen the same as for a corporation and all the same assessment actions will be identical to normal assessments through Day 119.

When the C-18 produces, it will have to be retyped on a special form, Form C-18R, and the examiner should make sure the name styling is correct as previously stated.

When requesting successor liability notices of assessment, in cases where the successor account has no indebtedness and no information exists in the Delinquency Names/Addresses and the delinquency action history screens (no statements have ever been produced by the system), the system will not allow access to the Delinquency Names/Addresses maintenance screens to key the pertinent information (online message of account not on file results).

In order to have the system successfully produce output in these cases, the following steps should be taken:

• Day One - key in the predecessor account via the Delinquency Names/Addresses maintenance screen the "Successor Liability" record to be used for the C-18. The name keyed in this record in the Delinquency Names/Addresses screen will appear in the literal in the grid area of the C-18 preceding the indebtedness on the predecessor account.
  
  
• Day Two - key via Notice of Assessment/Abstract/Execution request screen a request for a C-18 using bypass edits option and Transaction Code 1. Key the Address IID from the Delinquency Names/Addresses screen record in the predecessor account with the title "Succ Liab" in the appropriate field after the Succ Liab EID (predecessor account number). Also key the name and address of the successor account in the name and address fields of the Notice of Assessment/Abstract/Execution request request screen.
  
  
• Day Three - a successor liability C-18 should produce and a record in Delinquency Action History and Assessment Record screen should now exist on the successor account. (However, the name and address used on the C-18 for the successor does not establish a record in the Delinquency Names/Addresses screen.) Because a record is now established in the Delinquency Action History screen, you can access the Delinquency Names/Addresses screen on the successor account.

If you were able to key the correct name and address for the successor via Notice of Assessment/Abstract/Execution request screen and have a usable C-18, the procedure will stop here. This will likely be the case on accounts when the successor is an individual. However, if the successor is a partnership or a corporation, you will need to continue with the following steps.

• Day Three - key the appropriate name via Delinquency Names/Addresses maintenance screens into the successor Delinquency Names/Addresses screen . Delete the assessment record on the successor account via Notice of Assessment Update screen.
  
  
• Day Four - be sure all the above transactions have processed correctly and then key your request for a Successor Liability C-18 via Notice of Assessment/Abstract/Execution request screen using bypass edits option, transaction type blank, successor liability EID (predecessor account number) and address IID from the record marked "Succ Liab" in the predecessor Delinquency Names/Addresses maintenance screen.
  
  
• Day Five - a usable C-18 should now be generated along with an assessment record screen on the successor account listing all quarters and charges owed by the successor from the predecessor account. Delinquency Summary screen on the successor account should also reflect an "Assessment Pending" and "Succ Liab" flag.

When issuing a successor liability assessment, set up the following standard comment on each of the accounts involved on the Delinquency Comments screen:

Successor Account:

This employer is held liable under Sec. 204.086 for the indebtedness of predecessor, Account No.________. See Assessment No. _________. Review of the file is necessary for payoff information. Successor liability assessment record does not reflect the current late payment and judgment/assessment interest accrual on predecessor quarters. Call Collection Section for payoffs.

Predecessor Account:

Successor Account No. ___________ has been held liable under Sec. 204.086 for this employer's indebtedness. See Assessment No.__________.

When the process server is unable to serve an individual, partner, or officer at the address provided on the assessment, a bad address report and a declaration of not found affidavit are forwarded to us. The process server holds the assessment and allows a period of time specified in the state contract for service of legal documents to locate the person and provide another address within the same county without incurring an additional service fee. If another address is not provided within the allowed timeframe, the process server will return the assessment unserved.

Searches through our usual sources should be conducted immediately and a field assignment by e-mail should be made. Place a 30-day trace to see if any progress has been made on locating the person. If the person is located prior to the assessment being returned from the process server, a reply with the new address should be forwarded to the process server. Retain the hard copy transmittal in the Assessment folder. Comments should be established on delinquency comments screen providing the assessment number and the new address provided to the process server.

If the employer is located after the unserved assessment is returned by the process server, the new address of the employer should be typed on the C-18 and the old address lined out.

• A Tax system review should be made at this time to see if additional quarters have been added to the delinquency. If so, the assessment record should be deleted and a new C-18 ordered to include all quarters, unless statute quarters are involved. If statute quarters are involved, consult the supervisor to determine the best course of action.
  
  
• If the assessment has been reordered, add the cost of the previous attempted service fee via the Notice of Assessment Maintenance screen by keying in the cost in the service fee area.
  
  
• When the registered agent cannot be served at the registered office address, the assessment should be returned unserved so that we can reissue and request service on the Secretary of State. Follow the same steps as above to check for additional quarters. Stamp the C-18 with the SOS address rubber stamp and add an attachment with the proper statute citation for service on the Secretary of State.
  
  
• When reissuing an assessment, three copies of the C-18 are forwarded to the process server and the original is kept in the file.
  
  
• Comments should be established on Delinquency Comments screen providing the assessment number, the date of reissue, and the service address on all reissued assessments.

Texas Business Corporation Act

• Art. 2.11 applies to domestic corporations that fail to appoint or maintain a registered agent, or whenever its registered agent cannot with reasonable diligence be found at the registered office. The Secretary of State forwards a copy of the document by registered mail, addressed to the corporation at its registered office.
  
  
• Art. 8.10 applies to foreign corporations authorized to transact business in this State that fail to appoint or maintain a registered agent in this State, or whenever its registered agent cannot with reasonable diligence be found at the registered office, or whenever the certificate of authority shall be revoked. The Secretary of State forwards a copy of the document by registered mail, addressed to the corporation at its principle office in the state or country under the laws of which it is incorporated.
  
  
• Art. 8.14 applies to foreign corporations authorized to transact business in this State but have obtained a certificate of withdrawal, which revokes the authority of its registered agent in this State to accept service.

Texas Non-Profit Corporation Act

• Art. 1396-2.07 applies to domestic non-profit corporations that fail to appoint or maintain a registered agent, or whenever its registered agent cannot with reasonable diligence be found at the registered office. The Secretary of State forwards a copy of the document by registered mail, addressed to the corporation at its registered office.
  
  
• Art. 1396-8.09 applies to foreign non-profit corporations authorized to conduct affairs in this State that fail to appoint or maintain a registered agent in this State, or whenever its registered agent cannot with reasonable diligence be found at the registered office, or whenever the certificate of authority of a foreign corporation shall be revoked. The Secretary of State forwards a copy of the document by registered mail, addressed to the corporation at its principal office in the state or country under the laws of which it is incorporated.
  
  
• Art. 1396-8.13 applies to foreign nonprofit corporations authorized to conduct affairs in this State but have obtained a certificate of withdrawal, which revokes the authority of its registered agent in this State to accept service.

Texas Civil Practice and Remedies Code (Long Arm Statute)

• Sec. 17.044 applies to a nonresident (an individual who is not a resident of this State and a foreign corporation, association, or partnership) who: 1) is required by statute to designate or maintain a resident agent or engages in business in this State but has not designated or maintained a resident agent; 2) has one or more resident agents for service, but had two unsuccessful service attempts on different days; 3) is not required to designate an agent for service in this State, but becomes a nonresident after a cause of action arises but before the cause is matured by suit; 4) engages in business in this State but does not maintain a regular place of business in this State or a designated agent for service. The Secretary of State forwards a copy of the document by registered mail, to the nonresident's home or home office address.

Texas Professional Corporation Act, Art. 1528e

• Sec. 5 applies the rules under the Texas Business Corporation Act for service on domestic and foreign professional corporations.

Texas Professional Association Act., Art. 1528f

• Sec. 25 applies the rules under the Texas Business Corporation Act for service on domestic and foreign professional associations.

Texas Limited Liability Company Act., Art. 1528n

• Art. 2.08 applies to domestic and foreign limited liability companies that fail to appoint or maintain a registered agent in this State, or whenever its registered agent cannot with reasonable diligence be found at the registered office. The Secretary of State forwards a copy of the document by registered mail, addressed to the limited liability company or foreign limited liability company at its registered office.
  
  
• Art. 7.09 applies to foreign limited liability companies authorized to transact business in this state but have obtained a certificate of withdrawal, which revokes the authority of its registered agent in this State to accept service.

Texas Revised Limited Partnership Act., Art. 6132a-1

• Sec. 1.08(b) applies to domestic limited partnerships that fail to appoint or maintain a registered agent in Texas or its registered agent cannot with reasonable diligence be found at the registered office, and if a general partner of a limited partnership cannot with reasonable diligence be found. Secretary of State forwards a copy of the document by registered mail, addressed to the address of a general partner as it appears on file with the Secretary of State, or if no address appears on file, at the partnership's last registered office.
  
  
• Sec. 9.10(b) applies to foreign limited partnerships registered in Texas that fail to appoint or maintain a registered agent in Texas, if its registered agent cannot be found with reasonable diligence at the registered office, if its registration is canceled, or if it transacts business in Texas without having registered. The Secretary of State forwards a copy of the document by registered mail, addressed to the foreign limited partnership at its principal office in the state under which it is formed.