What are the penalties and interest for filing a sales and use tax return late?
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. 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 • State and federal tax returns • Documents that show price changes • Resale and exemption certificates 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 last business date in the block provided. Write the word “FINAL” prominently across the top of the return; and • Complete the back of the permit and enclose the permit card with the return. If a person purchases a business, is the person obligated for the previous owners sales tax liability? Yes. To avoid succe
