What are the penalties and interest if I file a sales and use tax return late?
A. There is a penalty of 10% of the tax due for the late payment of the tax. Interest at the current rate is also calculated on the underpayment of tax, but not less than 12%. Q. What records must I keep to verify the figures on my sales and use tax return? A. The following records must be kept at least three years: Sales receipts State and Federal Tax Returns Purchase invoices Documents that show price change Cash register tapes Exemption certificates Under certain circumstances, you may be required to produce records for more than three years. Q. I am closing my business. What should I do? A. You must cancel your sales and use tax permit by doing the following: File your monthly or quarterly return and check the “Yes” box following the question, “Are you out of business now?” Enter the last business date in the block provided. Also, write the word FINAL prominently across the top of the return. Enclose your permit card with the return.
