Why do I need to submit sales tax returns?

During the sales tax exemption process, we open a number of sales and use tax accounts with some states of the US in order to acquire your seller permits for exemption purposes. Once you have a seller permit from a state, it means your sales and use tax account is active with said state and it is your responsibility to keep your sales tax account up to date by submitting regular tax returns.

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This is needed even if your store is not making any sales yet - in this case a $0 sales return is required. Failure to submit your returns by their due date will result in tax delinquencies such as late filing fees and overestimations of your owed tax.

 

Why is RJM’s Sales Tax Filing Subscription helpful?

We provide a fully ‘hands-off’ service where we access your sales reports, calculate your taxes and submit your tax returns for each account you have active within the US. If you had your tax exemption process completed by us, then we will already have all your login information and seller permits saved in the system.

 

Why do you need access to my store’s sales?

This is needed in order to accurately calculate your taxes and submit your tax returns.

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Does this subscription run on a contract basis?

No, our services do not run on a contract basis, and you can stop your subscription with us at any time.

 

How do I cancel my subscription?

Get in touch with your assigned RJM consultant or with our admin team, and they will be able to assist you with cancelling your monthly subscription so no further payments are discounted from your account. When you cancel your subscription with us, we provide you with all your login details so that you can continue to file for your tax returns and avoid tax delinquencies.

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What if I am no longer in business and don't want to worry about filing tax returns?

If that is the case, we recommend you close all your sales tax accounts. If you simply stop submitting your returns and keep your accounts open, you will acquire large sums of tax delinquencies, which are then difficult to clear up. We provide an account closure service where we can assist you with closing all of these accounts down.

 

Why do I have to complete sales tax returns if my store is making no sales?

It is your responsibility to keep all your sales tax filing up to date from the month your accounts are opened. This applies even if your store is not yet in business. Failure to submit your returns can result in late filing fees, overestimations of your owed tax and ultimately, forced closure of your accounts which will interfere with your tax-exempt status. 

 

Why have I acquired tax delinquencies and fines/penalty notices if my store is making no sales?

It is your responsibility to keep all your sales tax filing up to date from the month your accounts are opened. This applies even if your store is not yet in business. Failure to submit your returns can result in late filing fees, overestimations of your owed tax and ultimately, forced closure of your accounts which will interfere with your tax-exempt status.

 

How many sales tax do I have to pay back to the states and will this be taken out automatically? 

If your store is selling via a marketplace such as Amazon, Walmart or eBay, these marketplaces will collect the sales tax for you and remit it back to the states automatically, so you will not have to make any payments from your account to the states. If your store is selling via Shopify or your own website, you will have to collect the sales tax and remit it back to any state you have nexus in.

 

How is the monthly fee worked out?

Our monthly fees are based on the number of sales tax accounts we have to take care of every month. We provide flat rates, meaning that, unlike other platforms, our monthly fee will not increase if you start making sizable sales, but it will also not decrease if you are making no sales.

 

Will the cost of the monthly fee increase or change based on the number of Sales I make?

No, we do not base our charges on the size of your sales reports, but on the number of sales tax accounts, we have to take care of every month. We provide flat rates, meaning that, unlike other platforms, our monthly fee will not increase if you start making sizable sales, but it will also not decrease if you are making no sales.

 

I just discovered my Sales Tax Filing backlog!

It is usual for clients to reach out to us with large tax delinquencies due to failure of keeping up with the sales tax returns. Our RJM Sales Tax Filing team specialises in penalty waivers and we will be happy to assist you through the process of getting your accounts back to good standing. 

 

What is the ‘RJM  backlog fee’  and why do I have to pay it?

We charge a basic monthly fee per backlogged period when working a backlogged account. For example, if your monthly sales tax filing subscription would be $100 per month, and you find yourself with a backlog of 5 months, we will charge $100x5 = $500 to clear the backlog. During the backlog clearance, we will work with penalty waivers and additional paperwork in order to get your tax delinquencies cleared up as well as your backlogged tax returns up to date.

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How much communication will I have with the RJM consultant assigned to my account?

Upon purchase of our sales tax filing monthly subscription, a member of our admin team will be in touch to complete your onboarding with the sales tax filing team. A consultant will then be assigned to your account and they will work on your tax returns every month. 

 

Please note the Sales Tax Filing deadline is the 20th of every month, and we always complete filing returns for the previous month (e.g. in February we submit tax returns for January; in March we submit tax returns for February, and so on). 

 

When your assigned RJM consultant has finalised your tax returns, they will be in touch with you via email with any updates, due payments, or simply a confirmation that your taxes are completed and up to date. This will happen every month. You are encouraged to contact your assigned RJM consultant directly as your main point of contact if you have any questions.

 

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