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Avalara Help Center

Why is there a large adjustment under the Amount Due to Avalara details?

Overview 

When reviewing your returns, you have found a large adjustment with a note similar to "Credit due to Company; contact Tax Administering Jurisdiction for refund of over-payment".

Environment 

AvaTax Update

Resolution 

  • This adjustment was added to offset the amount that is being remitted to Avalara as you have a credit due to you by the state for the current period.

    • Avalara does not owe you a refund as all amounts are paid to the jurisdiction.

  • This is caused when a prior payment is added to your return that is larger than the positive tax liability.

    • Example:

      • A prepayment was made towards the current month's tax liability in the amount of $5000.

      • The current month's tax liability is $4000.

      • Because you have overpaid your tax liability by $1000 to the jurisdiction, the jurisdiction owes you a refund of that amount.

  • If the adjustment was not added, then you would have a credit amount that would look like it is owed to you by Avalara.

    • The adjustment is not reported on your return since it is created to offset how much is paid to Avalara.

Note: Any credits due to you by a state or jurisdiction will not carry over to future periods and it is suggested to reach out to the state directly for steps on obtaining a refund.