TIP # 01A01-13
DATE ISSUED: October 8, 2001
Sales Tax Filing Status Changes Beginning January 2002
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 reached $200,000 for the period July 1, 2000, through June 30, 2001. You are required to make estimated tax payments beginning with your December 2001 return. This estimated tax payment is 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 payment made on the December 2001 return (Line 9) on Line 8 of your January 2002 return. You must continue to make estimated payments throughout 2002.
Electronic Payments and Returns
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.
Your first 2002 electronic payment and first electronic return will be due for the collection period of January 2002. This return is due on February 1, 2002, and late after February 20th. Your electronic payment must be initiated no later than 3:45 p.m., ET, on Tuesday, February 19th and the electronic date stamp on the return must be on or before February 20th. Note: You must continue to make electronic payments and filings throughout 2002.
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. The necessary forms and additional information to pay electronically will be mailed to you within the next two weeks.
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 an Electronic Filing Agreement and mail it to the Department prior to the transmission of your first electronic return. The necessary forms and additional information to file electronically will be mailed to you within the next two weeks.
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 Internet site at
www.myflorida.com/dor. Or call Tax Information Services, 8:00 a.m., to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671 (Florida 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 to the Florida Department of Revenue, Tax Information 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.