I received a Retail Accountability assessment. Should I amend my sales tax returns?

Possibly.  However, you must pay this assessment even if you amend returns.  If this assessment is not paid in full, it will be turned over for collection by our Collection Services Unit.  If this assessment plus the tax reported on your original sales tax returns for the quarter does not represent all the sales tax you collected during that quarter, you need to amend the returns for the quarter.  See the example below.

If you amend any sales tax returns and you think this should lower your assessment, contact the Retail Accountability Unit at Resale.Data@tn.gov or (615) 741-9300, and provide the amended information.  The assessment will not be automatically adjusted due to amended returns.  You must contact the Retail Accountability Unit once you have filed and paid the amended returns.

 

                                                    Example

Month
Sales Tax Collected
Sales Tax Reported
October
$7,500.00
$2,000.00
November
$8,200.00
$2,100.00
December
$9,750.00
$2,450.00
Total:
$25,450.00
$6,550.00

 

 

Sales Tax Collected for the Quarter:
$25,450.00
Sales Tax Paid on Sales and Use Tax Returns:
$6,550.00
Underreported tax:
$18,900.00
Retail Accountability Tax Assessment:
-$14,000.00*
Additional tax due on Amended Returns:
$4,900.00

 

The October, November and December monthly sales tax returns will need to be amended to report the $4,900.00 of additional tax collected and not remitted to the Department of Revenue. Your books and records should indicate which month the tax was underreported and the necessary months should be amended. 

* Penalty and interest from the Retail Accountability Assessment cannot be deducted from tax due.

Please note:  Amended sales and use tax returns will not cause the Retail Accountability assessment to be recalculated or the penalty to be removed from the assessment.  Tax paid on amended returns filed after the Retail Accountability assessment is issued will be considered a payment toward the Retail Accountability assessment.

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