TIP # 03A01-07
|Step 1.||Review all of your 2003 sales tax returns (including December return).|
|Step 2.||Add together the amounts from Line 7 (minus any discretionary sales surtax) for all 2003 returns.|
|Step 3.||Divide the total of all Line 7 amounts by the number of returns filed with tax due on Line 7. This is your 2003 average sales tax liability.|
|Step 4.||Multiply your 2003 average sales tax liability by 60%.|
|Step 5.||Enter the amount determined in Step 4 on Line 9 of your December 2003 return and all returns for 2004 through November. When using this method, you would recompute the estimated tax due prior to filing your December 2004 return.|
Calculate 60% of your sales tax collected during the same month of the previous calendar year.
Example: When completing your December 2003 return, look at your January 2003 return and multiply the amount from Line 7 (minus discretionary sales surtax) by 60%. Enter that amount on Line 9.
Calculate 60% of the tax collected for the collection period following this return.
Example: When completing your December 2003 return, your estimated tax liability is 60% of what you will collect (minus discretionary sales surtax) for the January 2004 return. Enter that amount on Line 9.
Note: If you correctly calculate your estimated tax using one of the three methods described above, you will not be assessed a penalty for underpayment of estimated tax. Dealers are NOT required to use only one method and may elect to use any one of these methods throughout the year.
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.
Penalty for Underpayment of Estimated Tax
If you underpay your estimated tax, a "specific" penalty of 10% is due on the underpaid amount. This penalty is added to the late filing penalty.
New Penalty Rate for Late Filing
The penalty structure for sales and use tax and solid waste and surcharges changed as of July 1, 2003, due to legislation that passed in the 2003 session. Under the new law, if a taxpayer files a late return, or is late in paying the tax due on a return, a late penalty of 10% of the amount of tax or fee or a minimum of $50, whichever is greater, will be assessed. The $50 minimum penalty applies even if no tax is due.
If your payment is late, interest is owed on the amount due. Florida law provides a floating rate of interest for payments of taxes and fees due, including discretionary sales surtax. The floating rate of interest is established using the formula in Section 213.235, F.S., and is updated on January 1 and July 1 each year. To obtain interest rates, contact the Department.
References: Sections 212.11, 212.12, and 213.755, 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 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 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.