Are penalties and interest imposed for filing a sales and use tax return late?
Yes. There is a penalty of $50 or 15% of the tax due (whichever is greater) for the late payment of the tax. Interest of 1% per month or fraction of a month is calculated on the underpayment of tax. Even if no tax is due, the Commissioner may revoke the sellers permit for the late filing of the return. What records must a business keep to verify the figures on its sales and use tax return? The business must keep the following records for a minimum of six years: • Sales receipts; • Purchase invoices; • Cash register tapes; • Restaurant guest checks; • State and federal tax returns; • Documents that show price changes; • Resale and exemption certificates; • General ledger; • Sales, purchases, accounts receivable, and accounts payable journals; and • Other documentation necessary to support the sales and use tax return. A business is closing. What should it do? The business must cancel its Sales and Use Tax Permit as follows: • File its monthly, quarterly, or annual return and enter the l
