We calculate how much sales tax you owe based on the information you supply on your sales tax return.
Check the calculations on your return. Also check that the payments claimed as deposits were made and have been cashed.
The most common errors are:
Included sales tax collected in the amount reported as gross sales.
To take the sales tax out of the gross receipt figure, use the following formula:
Gross receiptsxxx.xx
Divided by1.0xthe second number after the decimal is the state sales tax %, plus local option
= Gross salesxxx.xx
Example:
Gross receipts 150.00
Divided by 1.07 (7% total sales tax)
= Gross sales 140.18
Report gross sales on the sales tax return not the gross receipts.
Please check the following for the tax requirements in your area: Iowa local option tax information
Overclaimed the amount of deposits and overpayment credits on the sales tax return.
Check your records to be sure that the payments for monthly deposits have cleared your bank. If the checks have been cashed, you will need to send us copies of the canceled check front and back. Please attach the copies to the billing notice and mail in the envelope provided.
For further assistance, contact our accounts receivable call center at 515-281-3114.