Oklahoma Sales Tax Guide
Chapter 7: How to manage late Oklahoma sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Oklahoma 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 Oklahoma 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 Oklahoma Tax Commission?
The Oklahoma Tax Commission requires at least 90 percent of tax liability to be paid by the original due date of the return. Any unpaid tax is immediately classified as delinquent and a penalty of 5 percent is charged going forward.
If between 90 percent and 100 percent of tax liability is paid by the original due date of the return, interest will be assessed on the unpaid amount, even if no delinquent penalty is assessed. The unpaid tax becomes delinquent and interest is charged at the rate of 1.25 percent per month from the date of the delinquency until paid.
Underpayment of Estimated Tax Penalty
Estimated tax payments were required if the tax liability exceeds withholding (if applicable) by $500 or more. To avoid the Underpayment of Estimated Tax Interest, timely filed estimated tax payments and withholding (if applicable) are required to be equal to the smaller of 70% of the current year tax liability or 100% of the prior year tax liability.
The Underpayment of Estimated Tax Interest due on any quarterly due date is computed at a rate of 20% per annum for the period of underpayment.
Note: No Underpayment of Estimated Tax Interest will be imposed if the tax liability shown on the return is less than $1,000.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 Oklahoma Tax Commission 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 Oklahoma sales and use tax liability.