You would like to know what an annual reconciliations return is and why it is used.
- An annual reconciliations return is a return that compiles all transaction data, including taxes collected and taxes paid, for January 1st to December 31st of a given year.
- This is used to remit any backdated transactions that were created after the return for a specific return was filed.
- Example: Your March return was already filed but a transaction was created and dated for the March period.
- When viewing this in AvaTax:
- The Period Liability Sales column will display the tax amount for the entire year
- The Prior Payments listed in the Remit To Avalara Details will display all payments made for the entire year.
- The Return Remittance amount listed is the tax liability that has not been reported or paid for the entire year.
- An annual reconciliations return is required by:
- Rhode Island
- If you are unsure if you a required to file the annual reconciliations return, please contact the each state's Department of Revenue:
For steps to add your annual reconciliations filing calendar to AvaTax so that Avalara will file it, please review Use the Avalara Returns Filing Calendar.