Hopefully you don't need to worry about this chapter because you're getting your Rhode Island sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.
What do I do if I missed my Rhode Island sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.
What penalties and interest payments are imposed by the Rhode Island Division of Taxation?
Businesses that fail to pay collected sales tax to the Rhode Island Division of Taxation by the assigned deadline will be assessed a penalty of 10% of the tax due. Interest at the current rate is also calculated on the underpayment of tax – but not less than 12%.
If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Rhode Island Division of Taxation and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Rhode Island sales and use tax liability.
How can we help?
Our automation specialists are here to answer any questions you have, click the button below to start a chat.