Frequently Asked Questions

Sales and Use Tax > File and Pay > Penalty Information

• Can penalties be abated (cancelled)?
• How often do I need to file Sales and Use Tax?
• Why was I assessed penalty?

• Can penalties be abated (cancelled)?Back to top

  You may request that we abate (cancel) a penalty if you can show “reasonable cause” – an acceptable reason – for why your return or payment was late, or why you didn’t pay electronically when required to do so.
  
  For more information on penalty abatements and how to apply, see:

  Do I qualify for a penalty abatement?

  Revenue Notice 97-01, Penalties-Abatements-Policies and Procedures​

• How often do I need to file Sales and Use Tax?Back to top

  Sales and Use Tax may be due on a monthly, quarterly, or annual basis. The due date is based on the average monthly tax you reported in the previous year, as shown in the table below. 

  Filing Frequency​	Average Tax Reported​	Due Date​
  Annual​	Less than $100 per month​	Feb. 5 of the following year​
  Quarterly​	Less than $500 per month​	20th day of the month after the end of the quarter​
  Monthly​	More than $500 per month​	20th day of the month after the end of the month

   

  When a due date falls on a weekend or legal holiday, the due date is the next business day.

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• Why was I assessed penalty?Back to top

  Penalties are assessed for different reasons. The most common penalties for Sales and Use Tax are for late filing or late payment of the tax.

   

  If you don’t file your return on time, we’ll assess a 5 percent penalty. If you don’t pay the tax on time, we’ll assess a penalty of: 5 percent if your payment is up to 30 days late, 10 percent if it’s 31 to 60 days late, and 15 percent if it’s more than 60 days late.

   

  For more detailed information on penalties, see I was assessed penalty and interest.