Tax Authorities

Tax authorities represent the government bodies that collect and administer taxes. This guide covers authority configuration and management.

Overview

Tax authorities enable you to:

• Define collection bodies
• Set filing requirements
• Configure remittance
• Track filing deadlines
• Manage registrations
• Handle multi-jurisdiction

Accessing Tax Authorities

Navigate to Tax Management → Tax Authorities to manage authorities.

Understanding Authorities

Authority Types

Type	Description
Federal	National government
State	State/province level
County	County/regional
City	Municipal level
District	Special districts

Authority Status

Status	Description
Active	Currently collecting
Inactive	No longer collecting
Pending	Not yet effective
Suspended	Temporarily paused

Filing Frequency

Frequency	Description
Monthly	Every month
Quarterly	Every 3 months
Annually	Once per year
Semi-Annual	Twice per year

How-To Guides

How to Create Tax Authority

Adding Authority

1. Go to Tax Management → Tax Authorities
2. Click New Authority
3. Enter details:
   • Authority name
   • Jurisdiction
   • Tax ID/Registration
4. Configure filing:
   • Filing frequency
   • Due dates
   • Remittance account
5. Save authority

Authority Configuration

Tax Authority: California State Board of Equalization

Basic Information:
├─ Name: California State Board of Equalization
├─ Code: CA-SBOE
├─ Type: State
├─ Country: United States
└─ State: California

Registration:
├─ Tax ID: 123-456-789
├─ Registration Date: Jan 1, 2020
├─ Status: Active
└─ Permit Number: SR-CAL-12345

Filing:
├─ Frequency: Quarterly
├─ Due Date: Last day of month following quarter
├─ Electronic Filing: Yes
└─ Remittance: Direct debit

Contact:
├─ Address: Sacramento, CA 95814
├─ Phone: 1-800-400-7115
└─ Website: cdtfa.ca.gov

How to Set Filing Schedule

Filing Configuration

1. Open authority
2. Go to Filing Schedule tab
3. Configure:
   • Filing frequency
   • Due dates
   • Grace periods
   • Reminders

Filing Schedule

Filing Schedule: California State

Frequency: Quarterly

Filing Periods:
├─ Q1: Jan-Mar, Due: Apr 30
├─ Q2: Apr-Jun, Due: Jul 31
├─ Q3: Jul-Sep, Due: Oct 31
└─ Q4: Oct-Dec, Due: Jan 31

Settings:
├─ Grace Period: 0 days
├─ Penalty Rate: 10%
├─ Interest Rate: Variable
└─ E-File Required: Yes (>$10K annually)

Reminders:
├─ 14 days before: Email notification
├─ 7 days before: Dashboard alert
└─ Due date: Urgent notification

How to Configure Remittance

Payment Setup

1. Open authority
2. Go to Remittance tab
3. Configure payment:
   • Payment method
   • Bank account
   • Payment timing

Remittance Configuration

Remittance: California State

Payment Method: Electronic Funds Transfer (EFT)

Bank Account:
├─ Account: Operating Account
├─ Bank: First National Bank
├─ Account Number: ****4567
└─ Routing: ****1234

Timing:
├─ Auto-Pay: Yes
├─ Days Before Due: 3
├─ Max Amount: No limit
└─ Approval Required: Over $10,000

Confirmation:
├─ Email: [email protected]
├─ Reference: Include in GL
└─ Documentation: Auto-archive

How to Manage Multiple Jurisdictions

Multi-Jurisdiction Setup

Multi-Jurisdiction Configuration

Company Locations:
├─ Headquarters: California
├─ Warehouse: Texas
├─ Office: New York
└─ Distribution: Florida

Nexus Established:
├─ California: Physical presence
├─ Texas: Physical presence
├─ New York: Economic nexus ($500K sales)
├─ Florida: Physical presence
└─ [Other states]: Per economic nexus rules

Tax Authorities Required:
├─ California CDTFA
├─ Texas Comptroller
├─ New York DTF
├─ Florida DOR
└─ [Additional as threshold met]

How to Track Registrations

Registration Management

Tax Registrations

State        | Registration # | Effective | Expiration | Status
──────────────────────────────────────────────────────────────────
California   | SR-123456     | 01/01/20  | None       | Active
Texas        | 12-345678-9   | 03/15/21  | None       | Active
New York     | NY-987654321  | 07/01/23  | None       | Active
Florida      | FL-11-111111  | 01/01/24  | None       | Active

Alerts:
├─ Annual renewal: Texas (Due Feb 28)
└─ Economic nexus review: Quarterly

How to Handle Authority Changes

Rate Changes

1. Authority announces change
2. Create new rate effective date
3. Test calculations
4. Update systems
5. Document change

Authority Changes

Authority Change Log

Date       | Authority   | Change           | Effective
────────────────────────────────────────────────────────
Jan 15     | California  | Rate 7.25→7.50%  | Apr 1, 2026
Jan 10     | Texas       | New exemption    | Immediate
Dec 20     | New York    | Filing change    | Jan 1, 2026

Advanced Features

Economic Nexus Tracking

Monitor thresholds:

• Sales volume
• Transaction count
• Automatic alerts
• Registration prompts

Automated Filing

Electronic submission:

• Direct integration
• File generation
• Submission tracking
• Confirmation receipt

Multi-Company

Consolidated management:

• Shared authorities
• Separate registrations
• Combined reporting
• Intercompany handling

Audit Support

Examination preparation:

• Document access
• Report generation
• Communication logs
• Resolution tracking

Best Practices

Setup

• Complete all authorities
• Verify registrations
• Test filing process
• Document setup

Maintenance

• Monitor rate changes
• Track registrations
• Update contacts
• Review annually

Compliance

• File on time
• Pay promptly
• Keep records
• Respond quickly

Monitoring

• Track nexus
• Review thresholds
• Check deadlines
• Audit regularly

Configuration

Authority Settings

Navigate to Settings → Tax → Authorities:

• Default Settings - Common configurations
• Filing Defaults - Standard options
• Remittance - Payment settings
• Notifications - Alert settings

Integration Settings

• E-File - Electronic filing
• Payment - Payment processing
• Rates - Rate updates
• Certificates - Certificate services

Troubleshooting

Common Issues

Authority not applying

• Check jurisdiction match
• Verify active status
• Review effective dates
• Check nexus status

Filing deadline missed

• Check reminder settings
• Review calendar
• Contact authority
• File extension if available

Payment failed

• Verify bank details
• Check account balance
• Review error message
• Contact bank/authority

Registration expired

• Check renewal requirements
• Submit renewal
• Update system
• Document renewal

Related Documentation

Learn about Tax Groups to organize products for tax calculation.