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I filed my quarterly sales tax late and received a $50 penalty. The late filing penalty was added to the balance due for the sales tax and I made one payment for both the tax I owed and the penalty. I now need to record that sales tax payment in QuickBooks but I don't know how to record the $50 penalty.
Normally when I record the sales tax payments if the amount I paid to the state was any different than what QB says I owe, I could just click the Adjust button and record the sales tax adjustment. But in this case the extra $50 that I paid is not a sales tax adjustment, it isn't an extra $50 in taxes that I paid, it's a $50 penalty. I'm not sure what to do.
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@tkatke wrote:I filed my quarterly sales tax late and received a $50 penalty. The late filing penalty was added to the balance due for the sales tax and I made one payment for both the tax I owed and the penalty. I now need to record that sales tax payment in QuickBooks but I don't know how to record the $50 penalty.
Normally when I record the sales tax payments if the amount I paid to the state was any different than what QB says I owe, I could just click the Adjust button and record the sales tax adjustment. But in this case the extra $50 that I paid is not a sales tax adjustment, it isn't an extra $50 in taxes that I paid, it's a $50 penalty. I'm not sure what to do.
Actually it is part of the sales tax amount that you pay.
use adjust sales tax, set it to increase, select a penalty expense account you create first in the chart of accounts, and enter the amount, then pay all sales tax.
Hi there, @tkatke.
Thanks for providing a clear information about your concern. I can help you record the sales tax penalty in QuickBooks.
You will have to create an expense transaction to record the penalty. I'll walk you through the process:
For in-depth information, please refer to this article: Create, modify, and print checks. I also advise consulting your accountant if you need further assistance in recording the sales tax penalty.
Keep me posted if you have other questions about QuickBooks. Have a good one!
@tkatke wrote:I filed my quarterly sales tax late and received a $50 penalty. The late filing penalty was added to the balance due for the sales tax and I made one payment for both the tax I owed and the penalty. I now need to record that sales tax payment in QuickBooks but I don't know how to record the $50 penalty.
Normally when I record the sales tax payments if the amount I paid to the state was any different than what QB says I owe, I could just click the Adjust button and record the sales tax adjustment. But in this case the extra $50 that I paid is not a sales tax adjustment, it isn't an extra $50 in taxes that I paid, it's a $50 penalty. I'm not sure what to do.
Actually it is part of the sales tax amount that you pay.
use adjust sales tax, set it to increase, select a penalty expense account you create first in the chart of accounts, and enter the amount, then pay all sales tax.
Yes an adjustment is the best way as it both lets you accrue the expense to the correct period and then create one sales tax payment check to represent the one check you actually issued to the state.
It's an expense to the company not an accrued liability. Expense it.
I had a similar situation with the late sales tax payment penalty. I paid sales tax with the penalty and applied for penalty forgiveness. Recently, I received a check from the Department of Revenue. They returned my penalty back. So, I wonder how to enter this money?
Hi there, @Starik.
Thank you for reaching out to the Community.
I'm happy to know that you were able to receive the refund for the sales tax payment. Let me walk you through the steps on how to record it in QuickBooks:
Though, I'd recommend consulting with your accountant for you to be guided properly in applying the sales tax adjustments to your Chart of Accounts.
I'm also including this helpful article for more information about handling sales tax in QuickBooks: Process sales tax adjustment.
You can always get back to me if you have other questions and I'll do my best to help you out. Have a great day and Take care!
But Recording it this way creates two separate checks? I’m trying to keep it all in one check so it reconciles easier.
So when you make the adjustment, how do you locate it in your liabilities in order to attach it to the tax payment? My tax payment won’t allow me to add expenses like a typical check.
Thanks for joining this thread, @LC711.
I'd like to make sure that we're on the same page, so I give you the right amount of information. Can you share more details about your concern and how you set up the adjustment? Any extra details about this concern would be greatly appreciated.
I'll be keeping an eye on your response on this thread and we'll take it from there. Have a good one, @LC711.
Were you ever able to find a solution for this?
Hello there, Jamie.
To ensure we're on the same page, could you tell me additional details regarding your sales tax concern? This way I can be able to provide an accurate and timely solution to resolve your issue.
I'll be waiting for your response. Have a good day ahead and stay safe always.
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