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Avalara Help Center

What do I need to do for Action Required - Alabama Nexus Discrepancy?

Overview

You received an email indicating Avalara has found a discrepancy between your Avalara AvaTax Admin Console settings for Alabama and the tax return currently being filed on your behalf. 

Environment

Avalara Returns

Alabama

Resolution

  • First, determine if you are registered to report sales tax or retailer's use tax to Alabama.

    • If you are unsure which tax you should be reporting, please call the Alabama DOR at (800) 322-4106

  • To file Sales Tax

    • Confirm you are registered with the state to file the sales tax return.

    • Expire the sellers use return

    • Add a new filing calendar for the Alabama sales tax return.

    • Go to the Admin Console > Tax Returns > Manage Filing Calendars

      • Be sure to enter any new account number or filing frequencies.

  • To file Seller's Use Tax

    • Update your nexus setting for Alabama to “Sales and Sellers Use

      • Go to the Admin Console > Organization Nexus United States > Tax Type by Alabama.

    • To file both Sales Tax and Seller's Use Tax complete all three changes above

Note: Seller’s use tax is sales tax, but implies you are an out of state retailer rather than an in state retailer.