TIP # 02A01-13
DATE ISSUED: September 27, 2002
ESTIMATED SALES TAX FOR BUSINESSES WITH MULTIPLE LOCATIONS
USING THE SAME TAXPAYER IDENTIFICATION NUMBER
Your total sales and use tax payments, for all sales and use tax accounts (list enclosed) that have the same Federal Employer Identification Number (FEIN) or Social Security Number (SSN), reached $200,000 for the period July 1, 2001, through June 30, 2002. Dealers who paid sales and use tax in excess of $200,000 for the previous state fiscal year are required by Florida law to make estimated sales tax payments. You are required to make estimated sales tax payments for each of these accounts beginning with your December 2002 return. These estimated payments are for the January 2003 collection period.
Also, beginning January 2003, you must file returns and remit tax payments for sales and use tax, as well as solid waste and surcharge (if applicable), by electronic means. Therefore, you must:
Make estimated sales and use tax payments beginning with your December 2002 returns;
Remit sales and use tax payments (and solid waste and surcharge payments) by electronic means beginning with your January 2003 returns; and
File sales and use tax returns (and solid waste and surcharge returns) by electronic means beginning with your January 2003 returns.
Your first 2003 estimated tax payments are reported on Line 9 of your December 2002 returns. These returns are due on January 1, 2003, and are late after January 21, 2003. (January 20 is a federal holiday.) If you are currently paying by electronic means, your payments must be initiated on or before Friday, January 17, 2003, 5:00 p.m., Eastern Time(ET) .
You will record the estimated tax payments made on the December 2002 returns (Line 9) as a credit on Line 8 of your January 2003 returns. You must continue to make estimated tax payments on each return throughout 2003.
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 2002 (January 1 through December 31) sales and use tax returns (Form DR-15) for which you reported taxable transactions. 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 2002 returns with tax due. Multiply this average by .60 and enter the result on Line 9 of your December 2002 return.
60% of Same Month/Previous Year - Look at your January 2002 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 2002 return.
60% of Current Month - Estimate the amount of sales and use tax, less any discretionary sales surtax, you will collect during January 2003. Multiply that amount by .60 and put the result on Line 9 of your December 2002 return.
Do Not Underestimate. Underpayment of estimated tax will subject you to penalty and interest.
You Must File Returns and Pay Tax By Electronic Means
Your sales and use tax returns and payments, including estimated tax, and solid waste and surcharge returns and payments must be submitted by electronic means beginning with your January 2003 return(s). Before you can file and pay by electronic means, you must complete an online Enrollment/Authorization for e-Services at www.myflorida.com/dor no later than December 2, 2002.
Consolidated Filing Method
Dealers who operate two or more places of business that report through a central office or location are 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, please submit an Application for Consolidated Sales and Use Tax Filing Number (Form DR-1CON) to be issued a consolidated account number. You will need the consolidated account number prior to enrolling for e-Services.
You May File and Pay By Electronic Means on the Internet
You can fulfill your requirement to file and pay your sales and use tax returns and solid waste and surcharge returns electronically by using the Department's free and secure Internet site, or by using several commercial packages certified by the Department. For a complete listing of certified software providers, please go to:
Electronic Payment and Return Due Dates
Sales and use tax (and solid waste and surcharge) 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., Eastern Time (ET), on the last business day before the 20th, and electronic returns must have an electronic date stamp on or before the 20th. (Note: Effective January 1, 2003, the deadline for initiating electronic payments will be extended to 5:00 p.m., ET.)
Electronic payments and returns are required for your January 2003 returns. Your electronic payments are due February 1, 2003, and must be initiated no later than 5:00 p.m., ET, on Wednesday, February 19, 2003. Your electronic returns are also due February 1, 2003, and the electronic date stamp on the returns must be on or before February 20, 2003. Note: You must continue to make electronic payments and filings throughout 2003.
The Department has been authorized to waive the electronic filing requirement under certain conditions. You will not be required to purchase equipment or incur a financial hardship to comply with this law. If you have a valid business reason for not filing returns electronically, you must submit a Request for Waiver from Electronic Filing (Form DR-654) to the Department no later than December 2, 2002. If your request is approved, you are still required to remit payments by Electronic Funds Transfer (EFT). Contact the Department at 850-488-6800 or
1-800-352-3671 (in Florida only) for more information.
Failure to Comply
If you do not correctly file returns and make payments of sales and use tax and solid waste and surcharge by electronic means, you may incur penalty and interest. This failure may also result in the loss of your collection allowance.
If You Are Currently Filing Your Tax Returns By Electronic Means Using Certified Software
If you are filing your 2002 tax returns electronically using a certified software package, you will need to contact a vendor to obtain the 2003 software package. A list of vendors certified to produce software for 2003 (including solid waste and surcharge returns) will be available on the Department's Internet site in January 2003, at the previously listed site, or by calling the Department at 850-488-6800 or 1-800-352-3671 (in Florida only). Alternatively, you may contact the vendor providing your current software for additional information regarding your ability to file 2003 returns using their software.
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.