Amarillo Business Tax Preparation

The Panhandle's Business Centre

Amarillo had about 205,000 residents in the Census Bureau's 2025 estimate and serves a region far larger than the city. Pantex, the federal nuclear weapons plant northeast of town, employs about 4,600 people, Tyson's beef plant about 4,000 and Bell's aircraft assembly centre about 900. Feedyards, dairies and wheat farms surround the city, Interstates 40 and 27 meet here, and oil, gas and wind projects keep service firms busy. BOMCAS prepares returns for Amarillo businesses remotely.

Franchise tax and statewide business rules are on the Texas business tax page. Here we cover Amarillo's cattle, plant and trucking businesses.

What Amarillo Companies File

There is no state or city income tax. Companies file federal returns on Form 1120, 1120-S or 1065, farms and ranches run by individuals file Schedule F, and every taxable entity files the Texas franchise tax report by May 15.

Cattle and Farm Businesses

Feeders, stocker operators and cow-calf ranches deal with cattle held for sale, breeding stock held for production, feed and grazing costs and commodity hedges. Cattle bought for resale are inventory; breeding cattle held for two years or more can produce capital gain when sold. Farmers may use cash accounting and can deduct prepaid feed in some cases, subject to limits. In drought years, ranchers forced to sell more livestock than usual can elect to defer the extra gain.

Suppliers to the Big Plants

Machine shops, electrical contractors, maintenance firms and staffing companies serving Pantex, Tyson and Bell work under demanding contracts. Their returns depend on contract revenue timing, retainage, equipment depreciation and, for those doing engineering or development work, the research credit.

Trucking and Travel Businesses

Amarillo is a stopping point for freight on Interstate 40. Carriers, cattle haulers, truck stops, repair shops and hotels make up a large part of the local economy. Carriers depreciate trucks and trailers, deduct per diem for drivers within federal limits and file heavy vehicle use tax returns. Truck stops with fuel, food and retail sales need cost of goods sold by department.

Oil, Gas and Wind Service

Service firms working in Panhandle oil and gas fields and on wind farms carry expensive equipment and irregular income. Bonus depreciation for equipment acquired after January 19, 2025 helps in strong years, but the deduction should be planned against expected income.

Health Care and Professional Firms

Amarillo is the medical centre for the Panhandle, and clinics, practices and home health agencies are common clients. Professional corporations taxed as S corporations need reasonable owner salaries, and the qualified business income deduction is limited for high-income professionals.

Dairies and Cooperatives

The Panhandle has become one of the country's large dairy regions. Dairies are paid through monthly milk checks with hauling, marketing and cooperative deductions taken out, and those deductions are recorded gross so expenses are not lost. Patronage dividends from cooperatives are reported on Form 1099-PATR, and cooperative patrons may receive a pass-through deduction from the co-op. Replacement heifers raised on the dairy and cows culled from the herd each have their own tax treatment.

Our Review

Livestock inventory and breeding stock.
Prepaid feed and farm accounting methods.
Contract terms for plant suppliers.
Trucks, trailers and per diem.
Equipment purchases and depreciation.
Franchise tax reports.

Getting Started

Send us the accounting file, bank and loan statements, cattle and inventory records, equipment purchases and last year's filings. We review them, send one list of questions and walk you through the draft before filing.