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?


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


Avalara Returns


  • 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.