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Intuit

E-filing and payments for Sales tax

Learn how to electronically pay and file your sales tax liability through QuickBooks Online.

If you have set up and use Automated Sales Tax, you can now electronically pay and file sales tax liability and returns directly through QuickBooks. Here's a quick guide to this feature.

Note:
  • Cash basis is supported for calculation only at this time.

Enroll in Electronic Filing and Payments

When you select View next to a sales tax return, you will be asked how you would like to file your sales tax. You’ll have the option to select either Quick e-file set up or I’ll do it on my own.

  • Select I’ll do it on my own to return where you can record your payment.
  • Select Quick e-file set up to start the setup flow. The following items are required to complete e-file enrollment. If you already have an active bank account set up with us for payroll purposes, skip steps 3-7:
  1. Select Quick e-file set up.
  2. Enter the Sales Tax ID and sign in credentials for the tax agency.
  3. Choose your bank from the listed banks or by searching.
  4. Enter your sign in credentials for the bank.
  5. Choose the account to use (if applicable).
  6. Confirm your business information.
  7. Confirm your principal officer information.

Once the first agency has been set up, e-file for other agencies can be set up by accessing the Sales tax settings in the Sales tax center. In these cases, no banking information is required but specific to that agency like Tax ID, Sign in credentials.

Submitting sales tax return and payment

Once e-file setup is complete, returns will be available to review and submit. Selecting View brings up the Return Summary. This breaks down all sales and liability amounts, adjustments that have been made (such as pre-payments, prior payments, or agency credits) and will include the QuickBooks Filing Fee.

If you prefer to manually file this return with the tax agency, you can toggle off e-file to the right of the Return Summary. All sales tax returns and payments that are listed as Due must be submitted on or before the 15th day of the month to ensure timely filing with the agency.

If e-file is not selected, select Record payment to continue. Note: The payment is simply being recorded in your books. You’ll be responsible for manually filing the return and submitting the payment directly to the tax agency.

If E-file option is selected:

  1. Select the bank account in which to record the payment (QBO register only). This will only be done during the first filing per tax agency.
  2. Review and confirm the amounts are correct.
  3. Select E-file return.
    Note: Selecting E-file return is final. No changes will be allowed to the return after it has been submitted. Any changes made after will be reported into your next return for this agency.

Viewing Return status and Completed Returns

Once the return has been e-filed, it will appear in the In Progress section of the sales tax center. The return will remain in the In progress section until the payment and return have been successfully transmitted to the tax agency. If there is an issue with the return or payment, you will see the status updated here as well.

Current processing timelines are as follows:

Day Notes
1st to 19th day of the month Customer initiates e-filing
2 days after return initiated
The return will typically be filed
3-5 days after returns are accepted by the agency Funds are debited from the customer's bank account. QuickBooks Online status is updated to filed and paid once the payment has been successfully debited.

You can review all of your submitted returns and payments in the History section of sales tax center. Select View return to get the e-file confirmation information.

Overriding sales tax amounts on filing

With the Automated Sales Tax feature, you can override the amount of sales tax collected on transactions if you don’t agree with the recommended amount. However, if any overrides to the sales tax amounts have been made, electronic filing via QuickBooks will not be available for the tax return.

If amounts have been overridden, but you’d still like to e-file through QuickBooks, you can do so by choosing to use the recommended calculation amount. Choosing this option will automatically create an adjustment for you. This will adjust the tax liability in QuickBooks Online to match the payment amount. This is important to keep your books balanced for the period.

Payment Errors

When reviewing the status of the sales tax return in the tax center, you may see an error regarding the bank account/payment. Select the link available to determine the next steps needed. Reach out to our support team if you need further assistance.

  • Funds not available: This message appears if your account holds less funds than the amount due when we attempt to debit for the payment (sales tax liability + QuickBooks fee). Your e-file ability in QuickBooks remains on hold until we are able to recover the funds.
    • A re-debit attempt will occur on the same day for these type of returns. Ensure you have funds available in your account.
    • If the re-debit fails, contact our customer support team at 800-317-6244 or for some complicated issues we offer a callback for further assistance.
      • To check if you have the callback option:
        1. Go to Help, then select Contact us.
        2. Enter the topic of your concern, then select Let's talk.
        3. Select Get a callback in the options.
        4. Enter the needed information, then select Confirm my call.
  • Incorrect Bank Account: This message appears if we are unable to locate the bank account. Select Update bank info to correct your bank account data. Once completed, contact our customer support team at 800-317-6244 or for some complicated issues we offer a callback for further assistance.
    • To check if you have the callback option:
      1. Go to Help, then select Contact us.
      2. Enter the topic of your concern, then select Let's talk.
      3. Select Get a callback in the options.
      4. Enter the needed information, then select Confirm my call.
  • Issue with your bank: This means there was an issue with the bank account and you need to contact the bank to determine why the payment was unsuccessful.
  • Payment Error: Contact our customer support team at 800-317-6244 or for some complicated issues we offer a callback for further assistance.
    • To check if you have the callback option:
      1. Go to Help, then select Contact us.
      2. Enter the topic of your concern, then select Let's talk.
      3. Select Get a callback in the options.
      4. Enter the needed information, then select Confirm my call.
    • For more information, you can chat with our risk management team.

Rejected sales tax returns

If a sales tax return is rejected, we’ll send you an email regarding the rejection and the sales tax center will be updated to show an error with the return. Contact our customer support team at 800-317-6244 or for some complicated issues we offer a callback for further assistance.

  • To check if you have the callback option:
    1. Go to Help, then select Contact us.
    2. Enter the topic of your concern, then select Let's talk.
    3. Select Get a callback in the options.
    4. Enter the needed information, then select Confirm my call.

Frequently Asked Questions

Is there a fee for filing my tax return electronically through QuickBooks?
Yes, a filing fee will be charged for each sales tax return submitted.

If I complete the E-file set up, do I have to e-file my returns for each filing period going forward?
No, you'll be able to select whether you want to e-file through QuickBooks or file directly with the tax agency each time a tax return is due.

Why don't I have the option to enroll in e-file for sales tax?
This feature is not currently available to all QuickBooks Online customers. In order to be eligible for this feature, all transactions for the filing period must be created while using the Automated Sales Tax feature and the filing frequency listed and tax period for your tax agency must be correct in QuickBooks. Additionally, QuickBooks currently only supports e-file ability for approximately 30 state sales tax agencies. We are working to expand this feature across all 50 states. Select the link below to see the list of agencies currently supported: