Filing Frequency of Sales Tax – Try Annual

Yea! Another State on Annual Filing for me!

It doesn’t hurt to write as soon as possible to ask to be put on Annual Filing. Florida has just said yes! It won’t take effect until January 2018, but it’s a start. I have been successful in getting these States changed to annual filing:

AZ, CA, FL, IN, KS, KY, SC, TX, WA, WI

MD and PA are now semi-annual, and the others are quarterly, instead of monthly.

It saves you a lot of money going to annual filing, especially if you use a service.  Make sure to keep track of what is to be kept aside for when it’s time to file. I can share an excel sheet I use. I color code it for filing frequencies.

I was filing manually myself for year, using TaxJar just for annual filing States, but have since started using them for all because it’s not a job I particularly enjoy.

Here’s what I wrote to Florida to ask to go on annual filing:

Dear Sir/Madam

Sales Tax ID:

I respectfully request that I be eligible to file sales tax annually instead of monthly. I am a part-time seller on Amazon and the amount costs me, and probably you, more administration work than is warranted.

As an example, for the 2nd Quarter of 2017 my return was $67.00 for sales tax, and it costs me $20 each quarter to file. I cannot file manually all 20 States that Amazon has warehouses in, so have to hire someone for that.

Thank you for your consideration.

Best regards,
Karen Holmes

 

Here’s their reply:

From: Florida Department of Revenue

The Department has received your e-mail requesting an annual reporting frequency.   In review of your sales tax reporting, your sales tax reporting frequency will be changed to annual.

The filing frequency is based upon the amount of sales tax collected annually, during the state fiscal year of July 1 to June 30. Because you collected and remitted more than less than $100.00 monthly during the fiscal year July 1, 2016 to June 30, 2017; effective January 1 of the next calendar year (2018), the account is obligated to file annual returns.

Sales Tax                                           Return and Payment

Collected Annually                             Filing Requirement
$100 or less                                       Annual
$101 ‑  $500                                      Semiannual
$501 ‑  $1,000                                   Quarterly
More than $1,000                               Monthly

Thanks for the opportunity to respond to your inquiry.  If you have additional questions, you may contact us toll free at 1-800-352-3671.

Leola Carter
Tax Law Specialist
Taxpayer Services Process

It may change in the future, but for now I’ll enjoy just 1 time to file next year. They did do a survey and asked if I had any comments….er….yes…I asked that they consider increasing the dollar amount for annual filing. It was low this last year because my nexus in FL was later in the year.

 

Tennesse’s response to request to change to annual filing

 

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