Table 1: Filing Frequencies and Due Dates

 

Filing Frequency

Due Date for Return and Payment

Table 1 - Filing Frequencies and Due Dates

Monthly

 On or before the 20th day of the following month.

Quarterly

 On or before the 20th day of the month following the quarter end. 

Annual

 Due February 28th of the year following the tax year reported.

Sales/Use Accelerated Electronic Funds Transfer (EFT)

Effective January 1, 2014, Public Act 458 of 2012

Taxpayers who average $720,000 of sales or use tax annually are required to remit both taxes on an accelerated schedule. Taxpayers are notified in writing of a change to/from accelerated filing. Accelerated filers are required to remit electronically.

A prepayment transmission of 75 percent of the taxpayer's tax liability from the current year, immediately preceding month or the same period, last year (whichever is less) is due on or before the 20th day of the current month.

A reconciliation payment, equal to the difference between the actual tax liability and the prepayment amount is due on or before the 20th day of the subsequent month.

For example – hypothetical January 2015 tax period: 

 

December 2014’s total tax liability equaled $1,000,000. January 2014’s total tax liability equaled $1,500,000.  The taxpayer elects to base the January 2015 prepayment on December 2014’s total tax liability because it is the lesser amount.

 

Therefore, a $750,000 prepayment (75% of $1,000,000) is due on January 20, 2015. After month end the business determines that January 2015’s actual total tax liability equals $1,225,000. Thus, a reconciliation payment of $475,000 is due by February 20, 2015 ($1,225,000 minus $750,000 prepayment).

Accelerated EFT Filing Requirements

Questions and Answers About Paying your Sales & Use Tax on an Accelerated Basis