Filing Frequency
Filing frequency refers to how often a business is required to file and remit sales tax to a state or local tax authority. Depending on the jurisdiction and the volume of sales, businesses may need to file sales tax returns monthly, quarterly, annually, or in some cases, semi-annually.
In this article:
Where Can You Find Your Assigned Filing Frequency?
Your assigned filing frequency can typically be found in several places:
- State Tax Registration Confirmation: When you register for a sales tax permit, the state provides filing frequency details.
- Official Tax Notices: Periodic communications from tax agencies may include updates or changes to your filing frequency.
- Tax Agency Portals: Most states have online systems where businesses can log in and check their filing frequency.
- Galvix Platform: If you use Galvix for tax compliance, your filing frequency will be listed under the Returns section for each jurisdiction.
When a business first registers for sales tax, the state assigns an initial filing frequency, which may be adjusted later based on actual tax collection trends.
How Are Filing Frequencies Updated?
Filing frequencies are not fixed and may change over time based on:
- Annual Reviews by Tax Authorities: Many states review businesses’ tax liability at the end of a tax year and may adjust filing frequencies accordingly.
- Sales Growth or Decline: If a business experiences a significant increase or decrease in taxable sales, the state may notify them of a change in frequency.
- Failure to Comply: Late filings or missed payments can sometimes trigger an increase in filing frequency as a penalty.
- Business Request: If a business believes its filing frequency is incorrect or too frequent, it may be possible to request a review or adjustment from the state tax agency.
If you receive a notice from the state about a change in your filing frequency, you will need to update it in Galvix as well. To know more about how to update the filing frequency of a Scheduled Return in Galvix, click here.