Skip to main content
Avalara Help Center

Is a returned filed if there is a negative amount in the Month Sales column on the liability worksheet report?

Overview

We would like some detail on how negative amounts in the liability worksheet report are handled.

Environment

Avalara Returns

Resolution

  • 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.