Skip to main content
Avalara Help Center

What you need to know and do about Avatax incorrect results of sales and use tax rates in 28 Iowa counties between November 1 and 2, 2018

Overview

Between November 1 and November 2, 2018, Avalara AvaTax transactions that included county sales and use tax rates in 28 counties in the state of Iowa produced inaccurate results. The county tax calculated used a 0% tax rate rather than the appropriate 1% rate resulting in an under-collection of tax.

Environment

AvaTax

Resolution

Avalara has updated the AvaTax rates effective November 2, 2018.

Please note that any transactions dated November 1 through November 2, 2018 won’t show sales tax calculated in the following counties:

ADAIR

ADAMS

ALLAMAKEE

BENTON

BLACK HAWK

CALHOUN

CEDAR

CERRO GORDO

CHICKASAW

DUBUQUE

FAYETTE

FRANKLIN

GREENE

GRUNDY

GUTHRIE

IDA

JASPER

JEFFERSON

KEOKUK

MADISON

PLYMOUTH

POLK

POTTAWATTAMIE

RINGGOLD

TAMA

WAPELLO

WARREN

WEBSTER

 
 

Please take these mitigation steps:

Identify affected transactions

Review your sales transactions in Iowa from November 1 through November 2, 2018 and identify which transactions have county taxes calculated incorrectly.  To find affected transactions, review transactional data on the Transactions tab in AvaTax, or run a Tax Return - Sales and Sellers Use Tax Report.

You may also contact Avalara Product Support and request a list of transactions be securely transmitted to you.

Once you have identified affected transactions

Because the Iowa state tax return filing period is open, you’ll need to complete this review and make any necessary changes on or before November 30, 2018.  You may elect to absorb the undercharged tax by recalculating, or you can re-bill your customers for the corrected Iowa tax.

  1. You may recalculate each one manually (this can usually be done quickly if you have 20 or less transactions).  Note:  This will change your invoice but not re-bill or collect from the customer.  Click on the doc code > Edit > Calculate Tax > Save
  2. Avalara can recalculate the transactions for you.  Please reach out to Support and identify the document ID for the transactions and company in which the transaction are under in Avatax.  To identify document IDs, run an export report from the Reports menu.  Note:  This will change your invoice but not re-bill or collect from the customer.
  3. If you determine you want to re-bill your customers and not absorb the difference, please use the process for your accounting or ecommerce system to do so.  You may need to refund and reissue on some cases. 

Note: Should you choose not to recalculate tax due and report the tax charged and collected as-is. If you do make this choice, you risk an unfavorable audit and additional tax assessment, plus potential penalties and interest in the future. 

If needed, contact your tax professional for guidance on how to report the undercharged tax.

If you need assistance with recalculation, please contact Avalara Product Support.