Off-Calendar Reporting and Payment  
Sales tax returns and payments are, by statute, due on a monthly basis and references are made to the calendar month for this purpose. See e.g., F.S. s. 212.11(1)(b). The Department has long permitted some taxpayers to file on the basis of some regular reporting period other than the calendar month, however, and the current practice on this front is reflected in Rule 12A-1.056(1)(d). That rule permits dealers who maintain records on other than a monthly basis to use alternative reporting periods with advance Department approval. An explanation of the reasons why the taxpayer cannot reasonably report sales and remit payments on a calendar month basis is expected. Many retailers divide their year into successive 4-week, 4-week, 5-week periods for accounting and federal income tax purposes and the Department has been generous in allowing taxpayers to use those same off-calendar periods for reporting and paying Florida sales and use taxes. Unfortunately, taxpayers do not always seek permission for using such an off-calendar systems ahead of time and learn of that rule requirement when an auditor disallows collection allowances and assesses interest and penalty in an audit because the returns and payments did not follow calendar months. Taxpayers given permission to use an off-calendar system are asked to notify the Department once annually of the dates to be used in the upcoming year since returns and payments are due on the 20th day following the end of the reporting periods and the end date of the alternative reporting periods typically vary from year to year. As an aside, VMG understands that the Department expects to notify taxpayers in the near future that off-calendar reporting and payment will not be approved for Chapter 202 Communications Services Tax purposes.

Posted: 2006-09-01 00:00:00.0

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