CCH® SureTax® Returns

What is a sales tax return? 

A sales tax return is a crucial document that businesses or individuals must file to report their sales tax liability to the relevant tax authority. It provides information about the sales made during a specific period and calculates the amount of sales tax owed.

Who needs to file a sales tax return? 

Businesses that sell taxable goods or services registered for sales tax purposes are required to file sales tax returns. Whether you're a small business owner or a large corporation, it's important to comply with local tax regulations. Consult your local tax authority or a SALT (State and Local Tax) professional to determine your specific filing obligations.

How often do I need to file a sales tax return? 

Generally, businesses file monthly reports. However, the frequency of sales tax return filing varies depending on the jurisdiction and specific rules set by the tax authority. It can be monthly, quarterly, semi-annually, or annually. Compliance with the designated filing periods is crucial to avoid penalties, fees, interest, and even criminal charges.

How do I calculate the sales tax owed? 

Calculating the sales tax owed involves multiplying the taxable sales by the applicable sales tax rate in your jurisdiction. The sales tax rate can vary based on factors such as the location, type of goods or services sold, and any specific tax rules or exemptions that apply.

What is the process of remitting sales and use tax?

1. Gather your sales and purchase records: Collect all relevant sales and purchase records for the specific filing period. This includes sales invoices, receipts, exemption certificates, and any other documentation related to your taxable transactions.
2. Calculate taxable sales: Determine the total amount of sales made during the filing period that are subject to sales and use tax. Exclude any exempt sales or sales that are not subject to tax according to your jurisdiction's regulations.
3. Complete the tax return form: Obtain the sales and use tax return form from the tax authority's website or office. Fill out the form accurately and provide all requested information, including your business details, tax identification number, and contact information. Modern sales and use tax software like CCH SureTax should contain all relevant forms, making it easier for users to file returns.
4. Submit the tax return: Once the form is completed, submit it to the tax authority according to their guidelines. Some jurisdictions may require online filing, while others may accept physical forms by mail or in person. Ensure that you meet the specified filing deadline to avoid penalties or late fees.
5. Keep copies of the tax return and supporting documents: Retain copies of the filed tax return and all supporting documents for your records. These records are essential for future reference, audits, or reconciling your tax liability.
6. Make the tax payment: If you owe sales and use tax for the filing period, follow the payment instructions provided by the tax authority. Pay the tax owed by the specified due date to avoid penalties or interest charges. Note: Even if the tax return contains $0, you must file it with the authority.

Can I file my sales tax return electronically? 

Most tax authorities offer online platforms or electronic filing options for submitting sales tax returns. Electronic filing is often convenient, faster, and reduces the chances of errors. Check with your local tax authority for available electronic filing methods and ensure compliance with their requirements.

What happens if I fail to file my sales tax return? 

Failure to file sales tax returns or late filing can lead to penalties, fines, or other consequences imposed by the tax authority. These penalties may include interest charges on unpaid taxes, late filing fees, or even legal action. To avoid negative consequences, it is crucial to meet the filing deadlines and fulfill your tax obligations promptly.

Can I hire a professional to handle my sales tax returns? 

Absolutely! Many businesses choose to enlist the services of tax professionals or accountants to handle their sales tax returns. These experts possess the necessary knowledge and expertise to ensure accurate reporting, compliance, and minimize errors. However, it's still important to stay informed and have a basic understanding of sales tax to effectively manage your business's tax obligations. CCH SureTax Returns Managed Services can help you file and remit, or fully outsource sales and use tax returns to us.