TIP # 01A01-12
DATE ISSUED: October 8, 2001
Sales Tax Filing Status Changes Beginning January 2002
(Estimated Tax for Non-Consolidated Accounts)
Florida law requires dealers who paid sales and use tax in excess of $200,000 for the previous state fiscal year to make estimated tax payments. Your total sales and use tax liability, for all sales and use tax accounts (list enclosed) which have the same Federal Employer Identification Number (FEIN) or same Social Security Number (SSN), reached $200,000 for the period July 1, 2000, through June 30, 2001. You are required to make estimated tax payments for each of these accounts beginning with your December 2001 return. These estimated tax payments are for the January 2002 collection period.
Beginning January 2002, you must make sales and use tax payments and solid waste disposal fee payments (if applicable) electronically. Additionally, all sales and use tax (and solid waste) electronic payers must also file their returns electronically. Therefore, you must:
- Make estimated sales and use tax payments beginning with your December 2001 returns;
- Remit sales and use tax payments (and solid waste disposal fee payments) electronically beginning with your January 2002 returns; and
- File sales and use tax returns (and solid waste disposal fee returns) electronically beginning with your January 2002 returns.
Payment and Return Due Dates
Your first 2002 estimated tax payments are due on Line 9 of your December 2001 returns. These returns are due on January 1, 2002, and are late after January 22, 2002 (January 20th is a Sunday and January 21st is a holiday). If you are currently paying electronically, your payments must be initiated on or before Friday, January 18, 2002, 3:45 p.m., ET.
You will record the estimated tax payments made on the December 2001 returns (Line 9) on Line 8 of your January 2002 returns. You must continue to make estimated tax payments throughout 2002.
Electronic Payment and Return Due Dates
Sales and use tax (and solid waste disposal fee) payments and returns are due on the 1st day of the month following the month of collection and are late after the 20th. To be considered timely, electronic payments must be initiated no later than 3:45 p.m., ET, on the last business day before the 20th, and electronic returns must have an electronic date stamp on or before the 20th.
Electronic payments and returns are required for your January 2002 returns. Your electronic payments are due February 1, 2002, and must be initiated no later than 3:45 p.m., ET, on Tuesday, February 19, 2002. Your electronic returns are also due February 1, 2002, and the electronic date stamp on the returns must be on or before February 20, 2002. Note: You must continue to make electronic payments and filings throughout 2002.
Consolidated Filing Method
Each dealer who operates two or more places of business and maintains records for these businesses in a central office or place is eligible to file a consolidated return. When filing a consolidated return with supporting documentation for each location, only one electronic initiation and payment is necessary. If you would like to begin filing a consolidated return, complete the enclosed Application for Consolidated Sales and Use Tax Filing Number (Form DR-1CON) and return it to the Department.
How to Calculate Estimated Tax
Estimate your payment using Line 7 (TOTAL TAX DUE) on your sales and use tax return, less any discretionary sales surtax paid. Use one of these methods each month to calculate the estimated tax due:
- 60% of Monthly Average - Look at each of your 2001 (January 1 through December 31) sales and use tax returns (Form DR-15). Add together the amounts from Line 7 (TOTAL TAX DUE) on each return, less any discretionary sales surtax paid. To calculate the monthly average, divide the total by the number of 2001 returns with tax due. Multiply this average by .60 and enter the result on Line 9 of your December 2001 return.
- 60% of Same Month/Previous Year - Look at your January 2001 sales and use tax return (Form DR-15). Multiply the amount from Line 7 (TOTAL TAX DUE), less any discretionary sales surtax paid, by .60 and put the result on Line 9 of your December 2001 return.
- 60% of Current Month - Estimate the amount of sales and use tax, less any discretionary sales surtax, you will collect during January 2002. Multiply that amount by .60 and put the result on Line 9 of your December 2001 return.
Do Not Underestimate. Underpayment of estimated tax will subject you to penalty and interest.
You Must Pay Tax Electronically
Your sales and use tax payments, including estimated tax (and solid waste disposal fee payments), must be made electronically beginning with your January 2002 return(s). You must complete the enclosed Registration/Authorization Form (Form DR-600F) for 2002 and return it to the Department no later than December 3, 2001. If you choose NOT to consolidate, you must complete a separate DR-600F for each sales tax/solid waste fee account.
You Must File Tax Returns Electronically
Your sales and use tax returns (and solid waste disposal fee returns) must be filed electronically beginning with your January 2002 return. You must complete the enclosed Electronic Filing Agreement (Form DR-653) and mail it to the Department no later than December 3, 2001. If you have a valid business reason for not filing your 2002 returns electronically, you must apply for a waiver for each account by completing an EDI Waiver Request Form (Form DR-654) and mailing it to the Department with a copy of the enclosed list of accounts. Contact the e-Services Hotline at 850-487-7972 for more information.
You May File and Pay Electronically on the Internet
You may fulfill your requirement to file and pay your sales and use tax returns (and solid waste disposal fee returns) electronically by using the Department's Internet filing site(s). This option is NOT available if you choose to consolidate. You must complete an Electronic Filing Agreement for the Internet (DR-653W) and mail it to the Department no later than December 3, 2001. This document may be obtained by accessing the Department's Internet site at www.myflorida.com/dor and selecting the e-Services logo, or by contacting the e-Services Hotline at 850-487-7972.
Failure to Comply
If you fail to correctly make payments of sales and use tax and solid waste disposal fee electronically, the Department must impose penalty and interest. This failure will also result in the loss of your collection allowance.
References: Sections 212.11 and 212.12, Florida Statutes
FOR MORE INFORMATION
This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.
For forms and other information, visit our site at www.myflorida.com/dor. Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671 (for Florida residents only), or 850-488-6800
Hearing- or speech-impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.
For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.
To receive a fax copy of a form, call 850-922-3676 from your fax machine telephone.