Who must file electronically

More and more states require online filing. Some of our competitors offer software that prepares paper returns as well as online returns. Here’s our question: if states require taxpayers to file online, is it smart to pay for paper returns that you cannot use? We have for you a list of states that require you to file online, with further details below the table.

Alabama

New Rule 810-1-6-.12, entitled “Taxes Required to be Filed Electronically,” mandates electronic filing of the following taxes: State Sales, Sellers Use, Consumers Use, Rental or Leasing, Lodgings, Utility Gross Receipts, Utility Service Use Tax, Mobile Telecommunications Service, Pharmaceutical Providers, Alabama Nursing Home Privilege, Contractors Gross Receipts, and State Administered Local Sales, Use, Lodgings and Rental or Leasing Taxes. Filing can be done via the Internet or using the department’s new telephone filing system accessed by a toll free number (1-800-828-1727). More information

Florida

Any taxpayer who has paid the tax or fee in the prior state fiscal year (July 1 through June 30) in an amount of $20,000 or more must file returns and pay taxes and fees by electronic means. Any taxpayer who files a consolidated return must file returns and pay taxes and fees by electronic means. Any taxpayer who has two or more places of business for which the combined tax and/or fee payments equal or exceed $20,000 for the prior state fiscal year must file returns and pay taxes and fees by electronic means More information

Georgia

Taxpayers required to file by EFT must file returns electronically. For tax periods beginning on or after January 1, 2011, electronic funds transfer is required when the liability in connection with any return, report, or other document exceeds $500 More information

Indiana

Effective Jan. 1, 2010, all new businesses in Indiana must file and pay their sales and withholding taxes online via the state’s INtax program. This is required by Indiana law. More information

Massachusetts

An employer remitting wage withholding, an operator remitting state and local room occupancy excise, and a vendor remitting sales and use taxes, including sales taxes imposed on meals and telecommunications services, must file all returns and documents electronically and pay amounts due via electronic funds transfer for these taxes as of January 1, 2011 if the filer’s combined liability for the three categories of taxes for the preceding calendar year was $5,000 or more More information: MA Technical Information Release 10-18

Minnesota

Sales and Use Tax returns are required to be filed electronically unless the taxpayer has notified the state in writing of an intent to file by paper because of religious beliefs. More information

Nebraska

The sales tax return e-file mandate schedule is the same as the EFT threshold schedule:  Jan 2012 – $13,000; July 2012 – $11,000; Jan 2013 – $9,000: July 2013 – $8,000; Jan 2014 – $7,000; July 2014 – $6,000; and Jan 2015 – $2015. More information

New Jersey

All business taxpayers are required to file by phone, online or by third party software. More information

New York

Sales tax vendors must Web file if they meet all three of the following conditions: Prepare tax documents themselves, without the assistance of a tax professional; Use a computer to prepare, document or calculate the required filings or related schedules, or are subject to the corporation tax e-file mandate; and have broadband internet access More information

Ohio

All vendors must file returns electronically using the Ohio business gateway, the Ohio telefile system, or any other electronic means approved by the tax commissioner. Remittance must be made payable to the Treasurer of State. More information: Sec 5739.12, 5739.30, 574112(B) Ohio R.C

Oklahoma

Taxpayers who owed an average of $2,500 or more per month in total sales taxes in the previous fiscal year are required to file electronically. More information: OK Stat.tit. 68, 1365

Rhode Island

Taxpayers required to file by EFT must file returns electronically. Any person who has liability of $10,000 or more in connection with the filing of any return, report or other document with the Division of Taxation is required to remit tax payments for the relevant tax type electronically using either ACH Credit or ACH Debit method. More information: R.I Code R. EFT 09-01

Tennessee

Taxpayers required to file by EFT must file returns electronically. The Department will notify taxpayers that they are required to file electronically if the taxpayers’ average payment is $1,000 or more. More information

Texas

Taxpayers required to file by EFT must file returns electronically or reporting for more than 30 outlets. Legislation requires taxpayers to electronically transmit their payment for certain taxes, including sales tax, if a taxpayer paid $10,000 or more in a payment category during the preceding state fiscal year. More information

Virginia

Every dealer who elects to file a consolidated sales tax return for any taxable period and who is required to remit payment by electronic funds transfer pursuant to Section 58.1-202.1(B) of the Code of Virginia beginning on and after July 1, 2010, shall file his monthly return using an electronic medium prescribed by the Tax Commissioner. More information: VA. Code Ann 58, 2-615(D)

Washington

All quarterly and monthly taxpayers are required to file and pay electronically More information: Senate Bill 5571 / Engrossed House Bill 1357

West Virginia

Any taxpayer that pays a single payment of $100,000 for any tax type in the immediately preceding tax year shall electronically pay all tax dues. Effective for tax years beginning on or after January 1, 2013, this threshold is lowered to $50,000. The threshold amount is reduced to $25,000 for tax years beginning on or after January 1, 2014, and then to $10,000 for tax years beginning on or after January 1, 2015. More information: WV Code ST.R 110-10D-9

Latest Articles

What’s up with SSUTA?

What’s up with SSUTA?

Back in 2018, when the Supreme Court decision on Wayfair vs. South Dakota allowed states to make new laws requiring remote sellers to collect and remit sales tax on their behalf, there was a little bit of discussion on the question of whether this would...

read more
Reopening for business: Don’t forget sales tax

Reopening for business: Don’t forget sales tax

As businesses reopen with a post-pandemic future in mind, a lot of sales tax issues can come up. However, they may not obviously look like sales tax issues. If they don't your company could miss some important points. Goods and services Many companies...

read more
Sales Tax Surprises in the Pandemic

Sales Tax Surprises in the Pandemic

Congress has just finished working on a COVID-19 relief bill, and one of the big issues turned out to be...sales tax. Congress might not look at it that way. From their point of view, they were debating whether states need relief funds as businesses and...

read more