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Jacy
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience:  Nine years individual income tax preparation and consulting
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I was unaware of a sales tax rate increase last quarter and

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I was unaware of a sales tax rate increase last quarter and undercollected sales tax from my customers, but paid the actual sales tax due to the state. How do I categorize the money we paid to cover the difference?

Jacy :

Hello,

Customer :

hello...thanks for your help

Jacy :

You can expense this extra cost in your "taxes and licenses category". I hope it is not a significant amount.

Customer :

we pay quarterly, so it was about 20 or so dollars each month we had to cover.

Jacy :

That's good. Anyway, you can expense it just as any other cost of doing business.

Customer :

Thanks!

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