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Avalara Help Center

Can Avalara file bad debt deductions on sales tax returns?


You would like to know if Avalara can file bad debt tax.


Avalara Returns


AvaTax does not support the calculation and reporting of bad debt tax. You may create a credit transaction that will reduce the amount of reported tax but this will not be reported on a designated "Bad Debt" line on the return.

If you require the use of the "Bad Debt" line, it is suggested that the form be filed in-house by your entity. You can achieve this by expiring your return in AvaTax by the last day of the period, prior to the new returns building for your review and approval. For example, the deadline to expire your filing for the December return due in January is December 31st. Please review Edit scheduled returns for more information on how to complete those steps.

When you are ready for us to file your return again, you can add the new return in AvaTax with the same deadline in mind. Please review Schedule returns in Managed Returns for more information on how to complete those steps.


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