We would like some detail on how negative amounts in the liability worksheet are handled.
- When liability is negative for a given month, we hold back the negative (return) transaction(s) and file a positive value tax return.
- The transaction(s) which would make the tax return a negative value is held as a Carry-Over credit
- Carry over credits can only apply to liability greater than or equal to them, they are held until a month when we can include it in a filing.
- We show these on the Carry Over Credit report under Reports > Liability Worksheet Exports > Carry Over Credits
- A negative amount in Amount Due can occur if a tax credit or rounding from the previous month exceeds the payment to Avalara for the current month. It is applied to the withdrawal for all states for the current month.