You have viewed your liability worksheet for a specific state and found that the totals were not what you expected.
- A possible reason for this could be tax types not matching from the transactions to the type of tax being filed on your return.
- A simple way to verify would be to run the Sales and Sellers Use Tax Summary report to see what tax type the transactions are calculating.
- Compare this with the tax type listed on your registration and filing calendar with the jurisdiction.
- Each jurisdiction will have your company registered for a specific tax type to collect and remit.
- You can also check the tax type listed in Nexus
- Check to make sure if any carry-over credits were applied or excluded.
- Check the return filing frequency.
- If it is the middle of the cycle, you will see tax liability but nothing due.
- If it is the end of the cycle, you will see previous months' liability due.
- Check if we are set to file for that jurisdiction.
- Check the status date of the transactions.
- Transactions posted to AvaTax after the worksheet has been approved or approved on behalf will not be included on the return.
- If you have a quarterly return with monthly prepayments, transactions added after the prepayment had be reported would not have been included and would need to be reported on the quarterly return.
- Review your liabilities for any transaction discounts.
- Any discounts on your transactions will reduce your total sales for the state.
- You can view a summary of your totals, including discounts, on the Sales and Sellers Use Tax Summary report.
- Try to rebuild the liability worksheet.
- If changes to the liability were made recently, it is possible that the worksheets are still trying to build.
- Using the rebuild worksheet function would force those changes to build at that moment, updating all liabilities for the selected state(s).