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Tax notice guidelines

This article applies to:Avalara Returns

A tax notice is a letter or an email you receive from a tax jurisdiction letting you know about a requirement, an adjustment, or an error involving your tax account. Receiving a tax notice doesn't necessarily mean something's wrong. Some tax notices are informational only, providing updates about tax rate changes or letting you know you should adjust your filing schedule. 

What these tax notices mean and what you should do

Discrepancy notice

What it means

  • There's an issue with a return we filed on your behalf.

What you should do

  • Send the notice to us.
  • Find out if the state that sent the notice requires a power of attorney. If so, and we don't have a power of attorney on file for you, we won't be able to resolve the notice.
  • Double-check the status of a submitted notice by going to Returns > Tax Notices. 
  • Check your email for additional information requests from Avalara. If we determine that you owe taxes, we send an email with steps to finish resolving the notice.

Credit notice

What it means

  • You paid a jurisdiction more than you owe.

What you should do

  • Send us credit notices related to sales and use tax. We can apply the credit to a future return. We can't process a credit notice in these scenarios:
    • The credit isn't related to sales and use tax.
    • The credit is for use tax, but Avalara is only set up to file sales tax on your behalf. 
    • The notice indicates you're receiving a refund. In this case, there's no further action to take.
    • The credit is in one of the following states or countries: Canada, Arizona, District of Columbia, Hawaii, Kentucky, South Carolina, Tennessee, Wisconsin.
      If any of these scenarios apply to you, contact the tax jurisdiction directly to have the credit applied. 

Filing change notice

What it means

  • A jurisdiction changed how often they want you to file.

What you should do


Rate change

What it means

  • A jurisdiction changed a tax rate.

What you should do

  • We keep up with rate changes and should be making the change soon. You don't need to send the notice to us.  Adjust your custom tax rules if they're affected by the rate change.

Reminder to file

What it means

  • You need to file soon. 

What you should do

  • Make sure that your filing frequency matches the filing information in the notice. If there's a discrepancy, edit your forms and filing details in Returns. You don't need to send the notice to us.

Procedures

What it means

  • Filing procedures have changed.

What you should do

  • We can't do anything about procedure changes. You don't need to send the notice to us.  

Other

What it means

  • Any other notice related to sales or use tax. 

What you should do

  • Make any relevant adjustments in your business application. You don't need to send the notice to us.

Lack of filing notice

What it means

  • A jurisdiction didn't receive a return for a past filing period.

What you should do

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