Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
At this point, most e-commerce companies are accustomed to periodically filing sales tax returns. And in most states, sales tax returns are generally due monthly, quarterly or annually.
However, a handful of states take sales tax filing even further and require that businesses file an annual reconciliation.
States that require annual sales tax reconciliations
As of this writing, only three states require annual sales tax reconciliations.
In general, these reconciliations are “annual check ins” with the state’s taxing authority. Each state has their own reason for requiring this annual reconciliation, which we detail below.
Hawaii
Why Hawaii requires an annual general excise tax (their version of sales tax) reconciliation is a bit of a mystery. Unlike the other states with the same requirement, Hawaii doesn’t ask for any new information from taxpayers.
Hawaii publishes form G-49 for annual general excise tax reconciliation. You can also 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, so they require this on their annual reconciliation.
Michigan publishes fillable tax forms, including for 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.
Does TaxJar handle my annual sales tax reconciliations?
Yes. TaxJar AutoFile handles annual sales tax reconciliation in states that require it as a normal part of AutoFile. Ready to enroll in AutoFile and take annual sales tax off your plate? Learn more about signing up for TaxJar AutoFile here.
Ready to automate sales tax? To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
