Sales tax and Disputed Payments

[madeline7]

We sold something in December that we collected $350 of sales tax on, which we remitted to our state.

We were informed in late January that the payment was disputed, and automatically settled in the customer's favor because it is an EMV dispute. 

On the sales tax reports, I see that the sales tax is reduced by refunds, but not for payment disputes.

So I manually adjusted our sales tax amount that we will be remiting, reducing it by the $350 tax that was returned to the customer. 

If anyone is in a similar situation, is this what you found as well? How did you handle it?

[JJ_]

Hello there @madeline7

Sorry to hear about the disputed payment. For this particular question, I recommend reaching out to your State's Revenue or Treasury department, so they can clarify this for you.

What I'm trying to say is that we are unable to provide financial or tax advice on the Seller Community. 

I hope you are able to find an answer soon.