You would like answers to Frequently Asked Questions about MyLodgeTax filing and remittance extensions in response to COVID-19
- Q: How do I know if the jurisdictions that I remit taxes to are offering any tax relief because of the COVID-19 pandemic?
- A: Please check the following article to see if the jurisdictions that you file with are offering tax relief: https://www.avalara.com/us/en/blog/2020/03/coronavirus-tax-relief-roundup.html. This article is continually being updated as new information is released by the tax jurisdictions.
- Q: What if my tax jurisdiction is not listed but I cannot or do not want to make a tax payment this month?
- A: That is a business decision that only you can make. The lodging taxes that you collect from your guests are payments that the local and state jurisdictions are expecting as revenue that is used to help maintain the town where your short-term rental is located. Jurisdictions may conduct audits in the future and might possibly assess penalty and interest charges if tax payments were not made on time. Penalty and interest charges do stop accruing once the payment is made, so reporting revenue as soon as possible in future months would help to lessen any possible penalty and/or interest charges.
- Q: Once I'm ready to get caught up on filing and paying the sales and lodging taxes (or when the grace period my jurisdiction is giving expires), what are my options?
- A: You can either report the missed revenue in a future period, or amend the periods in which we filed $0 returns. We can help you with amended returns, or you can file those yourself with the tax jurisdiction(s). If you would like our help in amending previous returns, please email MyLodgeTaxSuport@Avalara.com when you are ready to begin that process.
- Q: What if I have both monthly and quarterly returns and I reported revenue for January and February but I do not want to remit the balance due on my quarterly return due in April?
- A: You will need to contact the MyLodgeTax Support team via email at MyLodgeTaxSupport@Avalara.com by April 5, 2020 to let us know that you do not want to remit payment on your quarterly return that has a balance due from previously reported periods. We will refund this balance back to you and file a $0 return for the quarter. Once you are ready to pay the taxes due, you can amend the March and Q1 returns yourself with the tax jurisdictions or have us file amended returns for periods in which you reported $0 in revenue. If you would like our help in amending, you will need to email us the amount of revenue that should have been reported for any months in which you reported $0 into your MyLodgeTax website.
- Q: What if I miss the April 5, 2020 deadline to let you know that I do not want the balance due on my quarterly return to be filed?
- A: April 5 is the deadline to let us know that you do not wish to pay the balance due on your quarterly return in order to give us time to reverse the balance that will be charged to your account and adjust the reported revenue on your quarterly return to $0. If we do not receive communication from you by April 5, we will unable to refund any balance due from January and February reported revenue. We will charge the balance due once you report revenue for March, even if it is $0, and we will file and pay the quarterly return as usual.
- Q: What if I have negative revenue to report because I refunded more money than I earned this month?
- A: You cannot report negative revenue on a tax return. You can either report $0 and deduct the negative balance in future months in which you do have revenue to report, or you can have us amend previously filed returns if you have already reported the revenue that you have now refunded. If you would like us to amend previously filed returns, please contact us at MyLodgeTaxSupport@avalara.com.
- Q: Can I put my Avalara MyLodgeTax account on hold until I start to have renters again?
- A: We are not able to put an account on hold because while there are active tax accounts open, the tax jurisdictions will still expect periodic tax filings. Here are your options:
- You can cancel your Avalara MyLodge Tax account and have us cancel your licenses and tax accounts. Once you start renting again and decide you would like us to help you out with your tax filings, you would add your property/properties back to your account and we would re-apply for your licenses and tax accounts. Please keep in mind that some jurisdictions are becoming stricter on the number of licenses and permits they are granting and we cannot promise that you would be able to obtain a short-term rental permit or license once you have cancelled your existing license.
- You can cancel your Avalara MyLodgeTax account, keep your license and tax accounts active, and file the periodic returns on your own. Once you start renting again, you can sign back up for our services and we can take over the tax filing where you left off.
- You can keep your Avalara MyLodgeTax account active and have us continue to file your returns, even if there is no revenue to report. We will continue to file your returns to keep you from becoming delinquent with the tax jurisdictions, keep you updated regarding any filing frequency or tax rate changes, and continue to work with you on renewing any expiring licenses.