Some states have county tax and require the monthly filings to delineate those sales by county. Let's say a company filed the correct amount but to the wrong counties for 30 years. Any idea of how closely this is looked into?
County A, B, & C have 5% rate. Company sells products to A, B, & C but claims on submission that all sales were in County A and remits total tax collected only to County A. Company hasn't kept any money but either through negligence or laziness filed them all to one county.
Posted by heinzsaigon
2 Comments
If audited the auditor would want fixed. In most states the state sales tax goes to the state but the county sales tax goes directly to the county. So not properly allocating the sales tax results in incorrect allo action of the tax the business collects.
In my state no penalty would be applied since the penalty is based on unpaid tax and there isn’t any in your scenario.
It could be caught on audit, but there would be no additional tax due if all the same rates.
Most states will have a negligence penalty/Failure to File Accurate Return that I supposed they *could* go after, but for a first time offense they’d probably waive it and tell you to correct prospectively.