Avalara recently determined that between January 1 and March 30, 2020, sales tax transactions in the Queen Creek Cornerstone SP, and Queen Creek Marketplace SP Arizona may have produced unexpected sales tax results. Sales tax transactions may include the city of Queen Creek 2.25% rate to show an unexpected total sales tax rate of 11.05% instead of 8.8%. You will need to review and make any necessary changes on or before April 20, 2020.
Please take these mitigation steps:
Identify affected transactions
Review your sales tax transactions in Queen Creek Cornerston SP, and Queen Creek Marketplac SP Arizona between January 1 and March 30, 2020, to see which transactions calculated with an unexpected sales tax rate of 11.05%.
To find affected transactions, review transactional data on the Transactions tab in AvaTax, or run a Tax Return - Sales and Sellers Use Tax Report.
Recalculate sales tax on the affected transactions
Because the Arizona state tax filing period is open, you will need to complete this review and make any necessary changes on or before April 20, 2020.
- To recalculate sales tax, import transactions, or recalculate from your accounting system.
- Next, refund your customer the over-collected 2.25% sales tax rate.
Note: It is unlawful to over-collect and not remit the over-collected tax. If you choose not to recalculate and refund the over-collected tax, you must report and remit the over-collected tax.
If needed, contact your tax professional for guidance on how to report the overcharged tax.