I’ve been collecting just 8.7% sales tax but paying 8.95% to the state for several years. The difference is $1,400/yr loss from overpaying. What should I do?

Somehow I missed the memo that the retail sales tax rate increased several years ago from 8.7% to 8.95%. I pay using the state website, so they've received the correct amount (actually over paid). When I file federally, I do not include the sales tax as an income or expense, I just report actual gross sales because the sales tax cancels out obviously.

Example for clarity: Say I sell $400k merchandise. I collect $34,800 in income tax at 8.7%.

When I file sale tax, I end up paying $35,800 (at a rate of 8.95%).

So I'm paying an extra $1,000 out of pocket for sales tax that was not collected from the customer, my error.

To correct it,

Incorrect: $400k sales revenue+ .087 tax = $434.8k total (same as below)

Correct: $399k sales revenue + .0895 tax = $434.8k total (same as above)

Resulting in $399,082 actual revenue received instead of $400k.

So it has cost me $1,000 loss in uncollected, yet paid to the state, sales tax. Plus that $1k difference end up being incorrectly reported as profit because I only grossed $399k, not $400k.

So I pay another $400/yr income tax on the $1k apparent income.

Net loss to me is about $1,400/yr.

If I were to wave a magic wand and correct everything, I could recover the $400/yr of extra income tax paid. I could not recover the uncollected sales tax obviously.

I guess it's pretty clear that refiling 1120-S's and 1040's to gain $400/yr is not going to make sense (?), as the simple cost of filing them will be more than that unless I were to submit them personally by paper. I normally have all my corporate and personal returns done by a tax professional, and do not really wish to break that consistency as I don't think it's worth it.

Is it ok to simply report the correct "net sales" of $399k on my federal return, even though it will be $1k less than the reported net sales on the state sales tax site? Or do I match the state's reported figure and include a line item deduction of $1k? Where and how would I do that?

It will be 100% factually correct. Again>>

Incorrect: $400k sales revenue+ .087 tax = $434.8k total (same as below)

Correct: $399k sales revenue + .0895 tax = $434.8k total (same as above)

If it's confusing, just look at the (Sales + Sales Tax) as a pool, from which the correct sales tax is paid out from. What remains is "net sales revenue". Note: I've not mentioned profit margin or net income anywhere here as it's irrelevant. It could be $50k or $150k for the purposes of this discussion.

I could individually correct each month's state income tax filing, which would make my federal filing match, but the net difference refund from the state would only be $90 and not worth the headache and likelihood for a state audit, by asking for a refund. The $1,000 difference is already lost due to not collecting it from the customers. Is it more important that the state sales tax returns match my federal return? Or is a single line deduction on the federal return sufficient? I usually research these things before approaching my tax pro so I have a sound basis for discussion. Thanks.