What to Know About Annual Sales Tax Reconciliation In 2022

by Lee Breslouer January 5, 2022


Filing sales tax returns monthly, quarterly or annually is not unusual. But if you’re filing in the states of Hawaii, Michigan or Rhode Island, it’s important to make sure you’re also filing an annual reconciliation. 

In a tax advisory memo in 2012, the state of Rhode Island best defined the purpose of the annual reconciliation: “it serves as a kind of annual report for retailers.” It reconciles, balances, and closes the tax year – it does not replace your monthly or quarterly returns. Each state has its own reason for requiring this annual reconciliation, which we detail below. 

Hawaii

Form G-49 is the Annual Return and Reconciliation form for Hawaii, and serves as your annual report to the state. If you’ve already filed and reported accurately prior to this, no additional tax is due. However, if you need to make corrections to previous filings, form G-49 may be used for that purpose.

Due dates

The due date for your annual reconciliation is the 20th day of the fourth month following the close of the taxable year. For calendar year filers, the due date is April 20th of the following year. You can file this form at Hawaii Tax Online. Or, just let TaxJar AutoFile handle your Hawaii  annual sales tax reconciliation.

Michigan

Michigan does not require that sales tax filers categorize deductions on their monthly or quarterly returns, but it is required on annual reconciliation. Keep in mind that all businesses are also required to file an annual return each year.

Due dates

For annual filers, the due date is February 28th, 2022, with a discount given for early remittance. Michigan publishes fillable tax forms, including form 5081 for annual sales tax reconciliation, here. Taxpayers can also file online at Michigan Treasury Online. Or, just let TaxJar AutoFile handle your annual sales tax reconciliation in Michigan.

Rhode Island

On top of regular sales tax filings, all Rhode Island sales tax filers are required to file a yearly sales tax reconciliation in January. Because Rhode Island only accepts a monthly or quarterly payment amount, they require annual sales and deductions to be reported on the annual reconciliation. Rhode Island considers this an “annual report” for sales tax filers. 

Due dates

Annual reconciliation is due January 31, 2022. Businesses who already file online can file their Rhode Island annual sales tax reconciliation here. Or, just let TaxJar AutoFile handle your annual reconciliation in Rhode Island.


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