South Dakota Sales Tax Guide
Chapter 7: How to manage late South Dakota sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your South Dakota 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 South Dakota 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 South Dakota Department of Revenue?
If sales tax is not paid to the South Dakota Department of Revenue within 30 days following the month the return is due, a penalty of 10% of the outstanding tax is assessed. The minimum penalty is equal to $10 and is assessed even if no sales tax is due.
Interest is assessed for each month or part thereof that the tax liability remains outstanding at a rate of 1.25%. The minimum interest assessed the first month is $5.
It is important to note that any tax, penalty or interest due to the South Dakota Department of Revenue equates to a lien in favor of the state on all real or personal property and rights to property belonging to the taxpayer. Furthermore, should you ignore repeated attempts to contact you in the form of notices and your account remains delinquent, your case will be assigned to a Revenue Agent for collection.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 South Dakota Department of Revenue 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 South Dakota sales and use tax liability.