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New Amend and file a return late

Amending and filing late returns involve filing a return for a previous (now closed) filing period: 

  • Amending a return means correcting a return filed incorrectly.
  • Filing late means filing a return that was missed and never filed.

To assist in processing an amendment or late filing, determine whether either is necessary. If you're uncertain about this, identify who to contact in your firm to get more information. In some cases, it may be our Professional Services team.

Determine the need for an amended return 

Consider the following:

  • If a return is filed, a notice is created, and it is determined an error was made, the Compliance team amends the return.
  • If the return filing task is set up incorrectly or the filing frequency is not updated, then create a Salesforce case and the effected returns go to Professional Services/backfiling. For example, a client sets up a quarterly filing frequency. Time passes and the state changes the filing frequency from quarterly to monthly. The Compliance team would not see the filing frequency change until they go to file the return on the website. 

When this occurs, the Compliance team contacts the client to determine one of the following:

  • A paper quarterly return should be sent 
  • The client would like the filing task changed to monthly, refund them the first two months of the quarterly return, and send those first two month to backfiling
  • Your firm and client choose not to backfile, you have to file on your own

If you determine that amending or filing late is necessary, gather the following information to assist your firm in completing the request:

Determine what happened

Why does the return require amending or late filing?

Is this an ongoing problem or a single incident? Understanding what caused the problem can help the client prevent it from happening again.

Why does the return require amending or late filing?

Is this an ongoing problem or a single incident? Understanding what caused the problem can help the client prevent it from happening again.

Determine the scope of what needs to be amended or filed late
Which returns? Include the state, form, original filing period, and company name.
What jurisdictions and which periods? Include the specific state and local jurisdictions.
Have collection and remittance been set up for these jurisdictions, and does the effective date include the periods that will be filed? If collection and remittance wasn't set up before the affected period, the client must adjust transactions in their system to reflect the correct tax amount.
At what frequency (for example, monthly, quarterly, and annually)?
What time frame (the entire year or just one month)?
Is a return scheduled for the jurisdiction the client wants amended or filed late? If no, you must schedule a return for the jurisdiction. If the client wants you to amend or file late for a jurisdiction they are no longer filing in, add this information to the request.
Are all transactions for the jurisdiction in AvaTax? If not, the client may need to [import the missing transactions]. We're only able to file with the data that's in our service, so AvaTax transactions need to be correct and complete prior to our filing a return for a previous period.

Timing varies depending on the amount of work being done and the overall workload of the Professional Services team. Once your request is in process, the Professional Services team can provide updates on the status of the returns. The remittance schedule is determined by the state jurisdiction. Once funding is received and settled, the returns are filed.

To find returns that have been amended or filed late, [Note: Where would they be found?].

Example request

Didn't reconcile Q1 filing so client neglected to add missing transactions

Jan – Mar 2016 (Q1) CA BOE 401 for ABC, Inc.

Amended Filing

Collection and remittance effective 1/1/2019 

Transactions taxed appropriately

Return is scheduled

Transactions ready to file (all adjustments made)

Cost of amending and filing late

The pricing structure for amending and filing late is variable, depending on the amount of work being done. Your firm can determine what team handles the amending and late filing of returns; it may involve submitting a proposal of work after reviewing the scope of the request. 

Your firm may also provide an estimate of the total cost ahead of time to your client; contact the appropriate internal team for more information. The final cost is still determined by your firm, though the client may have the opportunity to engage them directly as part of the amending or late filing process before committing to any payment.

Credit from the state

Sometimes amending returns can result in the state owing the client a credit. If this happens, consult your firm's business practices to determine how the refund is handled. States typically offer the option to take the credit against future returns, apply the credit against other client debts with the state, or provide a cash refund. The time to process any of these options, or whether the options are available, varies widely state-by-state.

Follow standard compliance escalation steps (for example, comment and inform client)
All amended or late filing request cases go to Backfiling Review unless client believes we are at fault. 
Include the information listed in the previous client example.

  

Before you begin

  1. Enter a.
  2. Add b. 
  3. Make sure c.  

Steps

  1. Provide a starting place for the customer, for example, "In AvaTax Update, go to x."
    1. Begin each step or substep with a verb, instead of a location (with rare exception). 
      If needed, add one to two sentences of additional information. Or, a short example. Only describe the result if it is surprising or unusual. 
    2. Provide the next substep. 
  2. Separate additional information from the step so the instructions are easy to scan.
    Press Shift+Enter to begin a new line. 
     
  3. Use a complete-lead in sentence when there is more than one choice:  
    • Option 1
    • Option 2
      Examples or additional text. 
    • Option 3
  4. Add inline links to other topics (replace the contents in the current tab, instead of opening a new tab TBD).
    In some cases, you can add the link in the flow of the sentence. In other cases, you may need to provide more context. For example: For information about x, see inline link. 
  5. Combine short steps. Select < x > and click OK. 

Describe the result of the task, if not obvious. Alternatively, place large examples here. Delete this section if there isn't a result or an example.  NEW as of 9/3/19: We are no longer including the "Result" or "Example" heading. 

See also  

Link to a related topic
Link to a related topic

 

Update to this template

  •  9/3/19: We are no longer including the "Result" or "Example" heading. 
  • 9/3/19: Use "See also" as a heading for links to related content. Only use "Next" for onboarding content. 

 

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