Filing Frequency and Due Dates
Sales/Use Accelerated Electronic Funds Transfer (EFT)
Due Date for Return and Payment
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 20thday of the subsequent month.
In a hypothetical January 2016 tax period...
December 2015's total tax liability equaled $1,000,000 and January 2015's total tax liability equaled $1,500,000. The taxpayer elects to base the January 2016 prepayment on December 2015'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, 2016.
- After month end the business determines that January 2016's actual total tax liability equals $1,225,000.
- Thus, a reconciliation payment of $475,000 is due by February 20, 2016 ($1,225,000 minus $750,000 prepayment).