I accidentally charged sales tax on merchandise during a tax holiday I was not aware of. Do i give the money to the government? Credit the customers? or put it into an over/short account?
Buisness is in connecticut, last week was a tax holiday for cloathing. Normally anything under 50 is not taxable, however last week, anything under 300 was not taxable.
If you collected sales tax from a customer, which is not refunded to the customer, you definitely need to remit the amount collected to the government.
Tax holidays are good for customers but a bit of a hassle for retailers, especially when there is a tiered sales tax level, as Connecticut has. The tax holidays that are a real nightmare require tax on specific items such as belts and shoes, and not other items a retailer may sell.
Most states offer a pretty good training class for filing sales and use tax returns. It's worth the time to take a classes if you can, as sales and use tax audits are extremely time consuming and expensive.
