July is the “Perfect Storm” for sales tax deadlines. Nearly every filing frequency (monthly, quarterly, semi-annual, fiscal year) all converge this month to force almost every online seller to go through the fun and enjoyable process of filing a sales tax return.
By the way, shouldn’t there be a law against filing tax returns during Summer vacation?
A lot of states refer to online sellers (or any business that collects sales tax on their behalf) as collection agents. In other words, once you collect sales tax from a buyer that money belongs to the state (not you). Many sellers find themselves in a position where they need to use those dollars to help manage cash flow. The downside to that is filing time might bring with it a surprise – you don’t have the money you owe to the state.
Making payments along with filing your return is critical. Every state features penalties and will tack on interest the longer you wait to pay. The good news is you have options even if you know how much you owe and can’t make your required payment. Thanks to our partnership with Kabbage, you can now use Kabbage funds to pay your sales taxes due if you are cash strapped or need extra money to fund working capital.
Connecting to Kabbage is as easy as it is to add your Amazon or PayPal account to TaxJar. In just minutes you can connect those same accounts to Kabbage to create your profile and determine how much you can borrow. You can have money in your PayPal account in 7 minutes. And their decision isn’t based solely on your credit score, either. Instead, Kabbage looks at your company’s actual data – like shipping and revenue.
So don’t stress about a lack of funds. File your return on time to avoid penalty and use Kabbage if you need extra money to pay what you owe. The sooner you do, the sooner you can get back to your vacation.