cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Sales Tax Penalty and Interest

I paid my sales tax a few days late and had to include a penalty and an interest amount as part of one lump sum payment on the online system to the sales taxing authority. However, when using the pay sales tax feature it gives me a warning. What is the proper way to enter the penalty and interest so it is included in pay sales tax to sales tax vendor

 

Solved
Best answer 05-30-2019

Accepted Solutions
QuickBooks Team

Re: Sales Tax Penalty and Interest

Thanks for joining the Intuit Community,karib1.


Creating a sales tax adjustment can help keep your record in order. I have a few easy steps on how to accomplish this task.

 

  1. Go to the Vendors menu, then scroll to the middle and choose Sales Tax.
  2. Select Adjust Sales Tax Due.
  3. In the Sales Tax Adjustment window, enter the correct Adjustment Date.
  4. From the Sales Tax Vendor drop-down, choose the correct sales tax agency.
  5. For the Adjustment Account, select the expense account used to track the penalty and interest. If you haven’t created one, follow the steps in this link and go directly to the Common Chart of Accounts tasks section.
  6. Mark the radio-button for Increase Sales Tax by and input the actual penalty in the Amount field.
  7. Click on OK.
    sp.png sp1.png sp2.png


Check out the Process sales tax adjustment article for more information. The added amount should now be included in the sales tax liability.


Let me know about your success in adjusting the sales tax. I’m always here to help you further.

 

1 Comment
QuickBooks Team

Re: Sales Tax Penalty and Interest

Thanks for joining the Intuit Community,karib1.


Creating a sales tax adjustment can help keep your record in order. I have a few easy steps on how to accomplish this task.

 

  1. Go to the Vendors menu, then scroll to the middle and choose Sales Tax.
  2. Select Adjust Sales Tax Due.
  3. In the Sales Tax Adjustment window, enter the correct Adjustment Date.
  4. From the Sales Tax Vendor drop-down, choose the correct sales tax agency.
  5. For the Adjustment Account, select the expense account used to track the penalty and interest. If you haven’t created one, follow the steps in this link and go directly to the Common Chart of Accounts tasks section.
  6. Mark the radio-button for Increase Sales Tax by and input the actual penalty in the Amount field.
  7. Click on OK.
    sp.png sp1.png sp2.png


Check out the Process sales tax adjustment article for more information. The added amount should now be included in the sales tax liability.


Let me know about your success in adjusting the sales tax. I’m always here to help you further.

 

Need to get in touch?

Contact us