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Separate tax return filing from tax return payment based on COVID-19 relief

This article applies to:Avalara Returns

Several states and tax jurisdictions in the U.S. have announced relief efforts for businesses impacted by COVID-19. If your business qualifies for relief that allows you to continue filing returns and delay payment, Avalara can continue to file your returns while you decide how your business will pay.

This feature is only available in tax jurisdictions that allow businesses to separate tax return filing and tax return payment.

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Changes made to your returns apply to this month's returns, filed next month. For example, if you separate filing and payment from May 1 to May 31, it applies to your May filing in June. A change after June 1 would apply to June filing in July.

If you'd like to separate filing and payment for the April filing period, you can do so until May 10 by opening a support case.

 

Before you begin

If you told us to stop filing a return for March or for the first quarter of 2020, go through these preliminary steps. If you did not ask us to stop filing a return as a result of the effects of COVID-19, continue to the primary steps in the article:

  • Schedule new returns for those tax jurisdictions so we can begin filing on your behalf again.
  • If all transactions for the jurisdiction and time period are not in AvaTax, import the missing transactions.
  • Once you schedule returns for the jurisdictions you stopped filing in and import any missing transactions, notify us that you want us to file returns you temporarily stopped filing.
  • After you've completed these tasks, if you want to separate tax return filing from tax return payment, follow the steps below.

Steps

  1. Prepare the following information:
    • The jurisdictions, forms, and filing periods included in the request (include state and local jurisdictions)
    • The filing frequency (monthly, quarterly, annually)
  2. Once you have that information ready, open a support case. After you enter your email address and select the company you want to file a skipped return for, select the following:
    1. What Do You Need Help With?
      Select Funding issue related to COVID-19.
    2. Subject
      Enter "Separate tax return filing from tax return payment."
    3. Description
      Enter the information from Step 1.

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By separating tax return filing from tax return payment, you choose to pay any sales tax owed for this return instead of Avalara. Avalara will still file your return.

By choosing to pay your own tax, you understand and agree to the following:

  • You’re responsible for paying tax owed for this return.
  • You must update the settings for this return when you’re ready for Avalara to resume paying tax for this return.
  • You’re responsible for any tax payment notices related to this return while you’re paying tax instead of Avalara.

Important: With respect to paying taxes for this return, Avalara has no obligation or liability to you, and the Returns Guarantee does not apply, until you explicitly indicate that Avalara should resume paying taxes again for this return.

When your business is ready for Avalara to begin paying on your behalf, open a support case to tell us you'd like to start filing and paying together.

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