As a part of a redetermination order, the comptroller may settle a claim for a tax, penalty, or interest imposed by this title if:
(1) collection of the total amount due would make the taxpayer insolvent and the taxpayer has submitted to the comptroller all financial records, including income tax reports and an inventory of all property owned wherever located; or
(2) the taxpayer is insolvent, is in liquidation, or has ceased to do business and:
(A) the taxpayer has no property that may be seized by the courts of this or another state; or
(B) the value of the taxpayer's property is less than the total amount due and the amount of debts against the property.
Official text of the Texas Tax Code as published by the Texas Legislative Council.