Looking to cancel one or more of your sales tax permits?
Whether you are closing your business or just ceasing to conduct business in a particular area, each state has unique guidelines for when and how you can cancel your sales tax permit. Our state-by-state guide will streamline the process for you - offering quick information and helpful links to make the task both more straightforward and less time-consuming.
Will canceling my sales tax permit increase my chances of a sales tax audit?
Canceling your sales tax permit may trigger a sales tax audit, depending on the circumstances. If you are canceling sales tax permits in multiple states, you should expect to receive questions from at least a handful of states to further explain why you are closing your permit. The states like collecting revenue, after all!
If you are closing your permit and everything is in good standing, you likely won’t face an audit, though the likelihood of being audited is higher than average. This is why we don’t recommend that our clients close their sales tax permit if there is any chance they will need to re-open it in the next year or two. Closing (and re-opening) a permit is a big hassle and the benefits usually don’t outweigh the additional risk of an audit.
If you are closing your sales tax permit and have past-due returns or an outstanding balance due, you can almost certainly expect additional scrutiny.
If you are closing your sales tax permit because you are selling your business, states will regularly audit you to ensure that all tax due has been paid since the responsible party is changing. You should also be aware that many states require that you notify them of the sale before the transaction takes place. Most businesses are unfamiliar with this requirement and the problems that can arise by not following all the rules.
Can I Close My Sales Tax Account If I No Longer Have Sales Tax Nexus?
If you have a sales tax permit, but you do not need it anymore because you no longer have sales tax nexus in that state, you can close your sales tax account. Closing the account means that you will not be responsible for collecting or remitting sales taxes, and won’t need to submit any sales tax filings. Before closing the account, check if there is a period of time when the permit still needs to stay open (“trailing nexus.”)
What Happens if I Don’t Close My Sales Tax Account and No Longer Have Nexus?
If you don’t close your sales tax account then you should still be collecting sales tax and filing returns with the state. Your obligation to collect and remit tax doesn’t go away because you no longer have nexus. Auditors may still chase you down and create tax assessments if filings are missing. Your responsibility to submit sales tax filings only ends once your sales tax account is officially closed with the state.
Can I Stop Collecting Sales Tax if I No Longer Have Nexus in a State?
Even if you no longer have sales tax nexus in a state, you still have an obligation to file and remit sales tax until your permit is closed. You should not turn off your sales tax collection settings until you have submitted your final sales tax return to the state and have confirmed that the account is closed. If you stop collecting sales tax before the account is closed, you may need to pay for the tax out-of-pocket. You should stop collecting sales tax from your customers on the date that your sales tax permit is closed.
Can I Submit $0 Sales Tax Filings if I No Longer Have Nexus?
You should continue to collect and remit sales tax even if your sales tax account is still open (even if you still have nexus). You should not submit $0 filings. If you no longer have nexus in a state and have submitted $0 returns, it might be possible to close the account using a permit end date in the past. However, this is risky and usually complicates things further and is not advised. The best thing to do is to continue collecting and remitting sales tax up until the day that the permit is officially closed.
Reasons To Keep Your Sales Tax Permit Open Even if You No Longer Have Nexus
Even if your business no longer has sales tax nexus, there may be reasons why it is still beneficial for you to keep your sales tax permit open. These include:
- Believing that you may need to re-open the permit again soon
- Avoiding unnecessary audit triggers
- Being able to create valid resale certificates
Believing that you may need to re-open the permit again soon
One reason why you might want to keep your permit open is that you believe you may need to re-open the permit again in the near future. This could be caused by hiring employees in the state, or believing that you’re going to cross the state’s economic nexus threshold. It is a lot of work to open and close state accounts and adjusting tax collection settings, so you should really only close the account if you think it will be closed for a while.
Avoiding Unnecessary Audit Triggers
You should also keep in mind that closing state sales tax accounts can be a trigger for an audit. Why put yourself on a state’s radar unnecessarily, especially if you think you might need the permit opened in the foreseeable future?
Being able to create valid sales tax resale certificates
Finally, you should keep in mind that having an open sales tax permit means that you can still issue sales tax resale certificates in states where a permit is required. If you were to close your account, then you might not be able to issue valid resale certificates to purchase inventory tax-free. For example, California requires that you hold an in-state sales tax license in order to purchase inventory tax-free from suppliers.
Jump Ahead to Individual State Instructions for Canceling Your Sales Tax License:
How to Cancel Your Sales Tax Permit in Alabama
Are you allowed to cancel your sales tax permit in Alabama?
Alabama outlines a few reasons to cancel your sales tax permit. The primary reason is for the closure of the business. The second reason is that you only registered for a permit in order to remit consumers' use tax. The only other reason is if you are only voluntarily collecting sales tax in the state.
How long do you need to keep your sales tax permit in Alabama if you no longer have sales tax nexus?
Alabama has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. As much was said in the 2013 case decision 12-863 John Van Horn v. State of Alabama Department of Revenue, “The above question – the “trailing nexus” issue – has never been addressed by Alabama’s courts.”
How do you cancel your sales tax permit in Alabama?
In order to close your sales tax permit in Alabama, you will need to fill out the Permit/Registration Cancellation Form.
Where can I go to learn more about canceling my sales tax permit in Alabama?
You can learn more about closing your sales tax permit in Alabama by reading Alabama’s frequently asked questions (FAQs) about sales tax.
How to Cancel Your Sales Tax Permit in Arizona
Are you allowed to cancel your sales tax permit in Arizona?
You are allowed to cancel your sales tax permit in Arizona if you no longer meet the nexus threshold requirements in Arizona. For out-of-state sellers who are collecting solely because of economic nexus, you would need to have less than $150,000 (2020 sales) or $100,000 (2021 & beyond sales) in the previous and current calendar year to be able to cancel your sales tax permit.
How long do you need to keep your sales tax permit in Arizona if you no longer have sales tax nexus?
It would appear you would need to keep your sales tax permit until the end of the calendar year in which you meet the definition of nexus.
How can you cancel your sales tax permit in Arizona?
The easiest way you can cancel your Arizona Transaction Privilege Tax (TPT) permit is by not renewing it at the end of the year. You may also close your sales tax permit in Arizona on your last TPT return by checking “cancel TPT license” and providing a reason for cancellation or by submitting a Business Account Update. You may also cancel your sales tax permit in Arizona through Arizona’s online portal.
Where can I go to learn more about canceling my sales tax permit in Arizona?
You can learn more about closing your sales tax permit in Arizona by reading Arizona’s TPT Out of State Sellers frequently asked questions (FAQs) and by reading how to Update a TPT Account.
How to Cancel Your Sales Tax Permit in Arkansas
Are you allowed to cancel your sales tax permit in Arkansas?
You are allowed to cancel your sales tax permit in Arkansas. However, the state has not given much guidance as to the applicable reasons for doing so.Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Arkansas if you no longer have sales tax nexus?
Arkansas has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Arkansas?
Since Arkansas sales tax permits are automatically renewed year-by-year, you must request a cancellation of your sales tax permit in Arkansas. You can close your sales tax permit in Arkansas through Arkansas’s sales tax portal.
Where can I go to learn more about canceling my sales tax permit in Arkansas?
You can learn more about closing your sales tax permit in Arkansas by reading Arkansas’s Remote Seller frequently asked questions (FAQs).
How to Cancel Your Sales Tax Permit in California
Are you allowed to cancel your sales tax permit in California?
You are allowed to cancel your sales tax permit in California if you no longer meet the nexus requirements. For out of state sellers who are collecting solely because of economic nexus in California, you would need to have less than $500,000 of sales in the previous and current calendar year to be able to cancel your sales tax permit.
How long do you need to keep your sales tax permit in California if you no longer have sales tax nexus?
Per Regulation 1827, once it is determined you no longer have nexus in California, you will be required to collect sales tax for the remainder of the calendar year, as well as the following calendar year.
How can you cancel your sales tax permit in California?
In order to close your sales tax permit in California, you will need to contact California’s customer service center at 1-800-400-7115 to begin the process of canceling your sales tax permit.
Where can I go to learn more about canceling my sales tax permit in California?
To learn more about California’s requirement to collect sales tax after nexus is de-established, you can read Regulation 1827.
How to Cancel Your Sales Tax Permit in Colorado
Are you allowed to cancel your sales tax permit in Colorado?
It is likely that you are allowed to cancel your sales tax permit in Colorado if you no longer meet the nexus threshold requirements. For out of state sellers who are collecting solely because of economic nexus in Colorado, you would need to have less than $100,000 of sales in the previous and current calendar year to be able to cancel your sales tax permit.
How long do you need to keep your sales tax permit in Colorado if you no longer have sales tax nexus?
Although it appears Colorado allows for you to cancel your sales tax permit once you no longer have economic nexus, Colorado has not defined how long you need to keep your sales tax permit after that point.
How do you cancel your sales tax permit in Colorado?
In order to close your sales tax permit in Colorado, you will need to cancel your sales tax permit through Colorado’s online portal or using the PDF form.
Where can I go to learn more about canceling my sales tax permit in Colorado?
You can learn more about closing your sales tax permit in Colorado by reading about how to close a Colorado sales tax account.
How to Cancel Your Sales Tax Permit in
Connecticut
Are you allowed to cancel your sales tax permit in Connecticut?
You are allowed to cancel your sales tax permit in Connecticut. However, the state has not given much guidance as to the applicable reasons for doing so other than for closing a business.
How long do you need to keep your sales tax permit in Connecticut if you no longer have sales tax nexus?
Connecticut has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Connecticut?
In order to cancel your sales tax permit in Connecticut, you must mark on your final sales tax return that it is your final return and enter your last business date. This can also be done on Connecticut’s sales tax portal.
Where can I go to learn more about canceling my sales tax permit in Connecticut?
You can learn more about closing your sales tax permit in Connecticut by reading about how to close a business and manage business registration in Connecticut.
How to Cancel Your Sales Tax Permit in
District of Columbia (Washington D.C.)
Are you allowed to cancel your sales tax permit in the District of Columbia (Washington D.C.)?
You are allowed to cancel your sales tax permit in the District of Columbia. However, the district has not given much guidance as to the applicable reasons for doing so other than for closing a business.
How long do you need to keep your sales tax permit in the District of Columbia if you no longer have sales tax nexus?
The District of Columbia has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in the District of Columbia?
In order to close your sales tax permit in the District of Columbia, you will need to cancel your sales tax permit using the District of Columbia’s sales tax portal.
Where can I go to learn more about canceling my sales tax permit in the District of Columbia?
You can learn more about closing your sales tax permit in the District of Columbia by reading the District of Columbia’s Sales Tax frequently asked questions (FAQs).
How to Cancel Your Sales Tax Permit in
Florida
Are you allowed to cancel your sales tax permit in Florida?
You are allowed to cancel your sales tax permit in Florida. At the present time, Florida allows for cancellation of a sales tax permit if “you have no plans for future business activity” or if you no longer have employees residing in the state. It is not certain whether this phrase would apply to remote sellers without physical presence.
How long do you need to keep your sales tax permit in Florida if you no longer have sales tax nexus?
Once you close your sales tax permit in Florida, you will need to file a final return which covers your date of last operation in the state and pay all taxes within fifteen days.
How do you cancel your sales tax permit in Florida?
In order to close your sales tax permit in Florida, you must fill out the “Request a Change of Business Name, Address, and/or Account Status” form. Please note you must identify an effective date for the cancellation of your sales tax permit.
Where can I go to learn more about canceling my sales tax permit in Florida?
You can learn more about closing your sales tax permit in Florida by visiting Florida’s sales tax homepage.
How to Cancel Your Sales Tax Permit in
Georgia
Are you allowed to cancel your sales tax permit in Georgia?
You are allowed to cancel your sales tax permit in Georgia. However, Georgia has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Georgia if you no longer have sales tax nexus?
Georgia has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Georgia?
In order to close your sales tax permit in Georgia, you will need to cancel your sales tax permit by closing your tax account using the Georgia Tax Center portal.
Where can I go to learn more about canceling my sales tax permit in Georgia?
You can learn more about closing your sales tax permit in Georgia by reading the instructions on how to close a Georgia tax account.
How to Cancel Your Sales Tax Permit in
Hawaii
Are you allowed to cancel your sales tax permit in Hawaii?
You are allowed to cancel your sales tax permit in Hawaii. At the present time, Hawaii allows for you to cancel your sales tax permit “if you no longer use or need it”. You would not need a sales tax permit in Hawaii if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Hawaii if you no longer have sales tax nexus?
You will need to keep your sales tax permit until the effective date of the cancellation. The effective date of cancellation is the last day of the last tax period for which you are required to pay sales tax.
How do you cancel your sales tax permit in Hawaii?
In order to close your sales tax account in Hawaii, you will need to cancel your permit through Hawaii Tax Online or through filling out the Notification of Cancellation of Tax Licenses and Permit form.
Where can I go to learn more about canceling my sales tax permit in Hawaii?
You can learn more about closing your sales tax permit in Hawaii by reading Hawaii’s Licensing Information frequently asked questions (FAQs) or by reading Hawaii’s Tax System Modernization frequently asked questions (FAQs).
Still More Information on Closing Sales Tax Permits in Each State
Are you still hanging in there? We aren’t done yet! There is still more information on how to close your sales tax account in each state. Remember, you can just follow the links at the top of the post to jump close to the information regarding any states.
How to Cancel Your Sales Tax Permit in
Idaho
Are you allowed to cancel your sales tax permit in Idaho?
You are allowed to cancel your sales tax permit in Idaho. However, Idaho has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Idaho if you no longer have sales tax nexus?
Idaho has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Idaho?
In order to close your sales tax permit in Idaho, you can use the Idaho Taxpayer Access Point (TAP) to mark “cancel your sales tax permit” on the last sales tax return you need to file or you may fill out the Changes to your Permit Account form.
Where can I go to learn more about canceling my sales tax permit in Idaho?
You can learn more about closing your sales tax permit in Idaho by reading about how to close or make changes to your Idaho permit account.
How to Cancel Your Sales Tax Permit in
Illinois
Are you allowed to cancel your sales tax permit in Illinois?
You are allowed to cancel your sales tax permit in Illinois. However, Illinois has not given much guidance as to the applicable reasons for doing so other than for closing a business.
How long do you need to keep your sales tax permit in Illinois if you no longer have sales tax nexus?
Illinois has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. However, when filing your final sales tax return in Illinois, you must mark that it is your final return. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Illinois?
In order to close your sales tax permit in Illinois, you can use the MyTax Illinois portal to “Request to Close Account”, you can also contact the state department at 217-785-3707, or by completing the “Questions, Comments, or Request” form.
Where can I go to learn more about canceling my sales tax permit in Illinois?
You can learn more about closing your sales tax permit in Illinois by reading about how to discontinue your business, update your business information, and close your business.
How to Cancel Your Sales Tax Permit in
Indiana
Are you allowed to cancel your sales tax permit in Indiana?
You are allowed to cancel your sales tax permit in Indiana. However, Indiana has not given much guidance as to the applicable reasons for doing so other than for closing a business.
How long do you need to keep your sales tax permit in Indiana if you no longer have sales tax nexus?
Indiana has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. However, you are required to file and remit a tax return up to and including the closing date of the sales tax permit. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Indiana?
In order to close your sales tax permit in Indiana, you can close your account using Indiana’s online portal, INTIME, or by filling out the Indiana Business Closure Request Form BC-100.
Where can I go to learn more about canceling my sales tax permit in Indiana?
You can learn more about closing your sales tax permit in Indiana by reading about how to close a business account in Indiana.
How to Cancel Your Sales Tax Permit in
Iowa
Are you allowed to cancel your sales tax permit in Iowa?
You are allowed to cancel your sales tax permit in Iowa. However, Iowa has not given much guidance as to the applicable reasons for doing so other than for closing a business.Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Iowa if you no longer have sales tax nexus?
Iowa has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. However, Iowa Department of Revenue Policy Letter 06240045 states that nexus for corporate income tax is determined on a year-by-year basis, thus there is a possibility that sales tax nexus may also be determined on a year-by-year basis.
How do you cancel your sales tax permit in Iowa?
In order to cancel your sales tax permit in Iowa, you can close your account by submitting the Combined Business Change Form online or by completing the Iowa Business Tax Cancellation Form 92-034.
Where can I go to learn more about canceling my sales tax permit in Iowa?
You can learn more about closing your sales tax permit in Iowa by reading about managing Iowa business permit registrations.
How to Cancel Your Sales Tax Permit in
Kansas
Are you allowed to cancel your sales tax permit in Kansas?
You are allowed to cancel your sales tax permit in Kansas if you sold or closed your business, or have no activity to report. Generally speaking, you would have no taxable sales to report if you no longer had nexus in the state.
How long do you need to keep your sales tax permit in Kansas if you no longer have sales tax nexus?
Generally speaking, you should be able to close your sales tax permit in a state if you no longer have sales tax nexus there. However, Kansas has not provided specific guidance on when you are allowed to close your sales tax permit.
How do you cancel your sales tax permit in Kansas?
In order to cancel your sales tax permit in Kansas, you need to close your account by completing the Kansas CR-108 Notice of Tax Account Closure form.
Where can I go to learn more about canceling my sales tax permit in Kansas?
You can learn more about closing your sales tax permit in Kansas by reading about what to do if your business is closed, sold, or has no activity to report. You can also learn more by reading Kansas’s frequently asked questions (FAQs) about sales tax.
How to Cancel Your Sales Tax Permit in
Kentucky
Are you allowed to cancel your sales tax permit in Kentucky?
You are allowed to cancel your sales tax permit in Kentucky. Kentucky gives the following reasons to cancel your sales tax permit: business closed/business sold, no further Kentucky activity, ceased having employees, ceased making retail and/or wholesale sales of tangible personal property or digital property, death of the owner, converted to another ownership type and must reapply for new accounts, or merged out of existence.
How long do you need to keep your sales tax permit in Kentucky if you no longer have sales tax nexus?
You are required to keep your Kentucky sales tax permit until the effective date of canceling your account. From the wording of the form, it appears you are eligible to cancel your sales tax permit until you no longer have any activity in the state (nexus).
How do you cancel your sales tax permit in Kentucky?
In order to cancel your sales tax permit in Kentucky, you need to close your account by completing “Section F” of the Update or Cancellation of Kentucky Tax Accounts form 10A104-1.
Where can I go to learn more about canceling my sales tax permit in Kentucky?
You can learn more about closing your sales tax permit in Kentucky by reading Kentucky’s additional tax registration information as well as by reading Kentucky’s instructions for the Update or Cancellation of Kentucky Tax Accounts form.
How to Cancel Your Sales Tax Permit in
Louisiana
Are you allowed to cancel your sales tax permit in Louisiana?
You are allowed to cancel your sales tax permit in Louisiana. However, Louisiana has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you are allowed to close your sales tax permit if you no longer have sales tax nexus in the state.
How long do you need to keep your sales tax permit in Louisiana if you no longer have sales tax nexus?
Generally speaking, you are allowed to close your sales tax permit if you no longer have sales tax nexus in the state. Louisiana has not given any definitive guidance as to when you are allowed to close your sales tax permit if you no longer have nexus.
How do you cancel your sales tax permit in Louisiana?
In order to close your sales tax permit in Louisiana, you will need to complete the Louisiana Request to Close Business Tax Accounts form R-3406.
Where can I go to learn more about canceling my sales tax permit in Louisiana?
You can learn more about closing your sales tax permit in Louisiana by reading the Louisiana Department of Revenue frequently asked questions.
Still More Information on Closing Sales Tax Permits in Each State
Are you still hanging in there? We aren’t done yet! There is still more information on how to close your sales tax account in each state. Remember, you can just follow the links at the top of the post to jump close to the information regarding any states.
How to Cancel Your Sales Tax Permit in
Maine
Are you allowed to cancel your sales tax permit in Maine?
You are allowed to cancel your sales tax permit in Maine. However, Maine likely requires that you have closed or sold your business in order to legally cancel your sales tax permit.
How long do you need to keep your sales tax permit in Maine if you no longer have sales tax nexus?
It seems unlikely that you would be able to cancel your sales tax permit in Maine due to no longer having sales tax nexus.
How do you cancel your sales tax permit in Maine?
In order to cancel your sales tax permit in Maine, you will need to check a box on your Maine sales tax return indicating that you have closed or sold your business. You may do this on Maine’s online portal as well.
Where can I go to learn more about canceling my sales tax permit in Maine?
You can learn more about closing your sales tax permit in Maine by visiting Maine’s sales & use tax page as well as Maine’s guidance for remote sellers.
How to Cancel Your Sales Tax Permit in
Maryland
Are you allowed to cancel your sales tax permit in Maryland?
You are allowed to cancel your sales tax permit in Maryland. Maryland allows you to cancel your sales tax permit if you no longer have nexus in the state of Maryland and are no longer required to file sales tax returns.
How long do you need to keep your sales tax permit in Maryland if you no longer have sales tax nexus?
You will need to keep your sales tax permit in Maryland until you submit your final return.
How do you cancel your sales tax permit in Maryland?
In order to cancel your sales tax permit in Maryland, you will need to complete the Maryland Final Return Form 202FR. You could also cancel your sales tax permit by calling 1-800-638-2937.
Where can I go to learn more about canceling my sales tax permit in Maryland?
You can learn more about closing your sales tax permit in Maryland by reading about Maryland’s nexus information for sales & use tax, by reading about how to close a business in Maryland, or by reading Maryland’s tax alert regarding remote sellers.
How to Cancel Your Sales Tax Permit in
Massachusetts
Are you allowed to cancel your sales tax permit in Massachusetts?
You are allowed to cancel your sales tax permit in Massachusetts. However, Massachusetts has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you are allowed to close your sales tax permit if you no longer have sales tax nexus in the state.
How long do you need to keep your sales tax permit in Massachusetts if you no longer have sales tax nexus?
Generally speaking, you are allowed to close your sales tax permit if you no longer have sales tax nexus in the state. Massachusetts has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus.
How do you cancel your sales tax permit in Massachusetts?
In order to close your sales tax permit in Massachusetts, you will need to visit MassTaxConnect (Massachusetts’s online portal for sales tax). You may also call 617-887-6367 or toll-free in Massachusetts at 800-392-6089.
Where can I go to learn more about canceling my sales tax permit in Massachusetts?
You can learn more about closing your sales tax permit in Massachusetts by reading about the requirements for closing your business in Massachusetts as well as visiting Massachusetts’s homepage for sales & use tax.
How to Cancel Your Sales Tax Permit in
Michigan
Are you allowed to cancel your sales tax permit in Michigan?
You are allowed to cancel your sales tax permit in Michigan. Fortunately, Michigan explicitly allows you to cancel your sales tax permit if you no longer have sales tax nexus.
How long do you need to keep your sales tax permit in Michigan if you no longer have sales tax nexus?
Sales tax nexus in Michigan continues for the duration of the month that nexus was established and for the following eleven months. Thus, if you do not have activities that would create sales tax nexus for eleven consecutive months, you would no longer have sales tax nexus after that time and would be then able to cancel your sales tax permit.
How do you cancel your sales tax permit in Michigan?
In order to close your sales tax permit in Michigan, you will need to complete the Michigan Notice of Change or Discontinuance form 163.
Where can I go to learn more about canceling my sales tax permit in Michigan?
You can learn more about closing your sales tax permit in Michigan due to no longer having economic nexus by reading Michigan Revenue Administrative Bulletin 2015-22. You can also read about the process of closing your sales tax permit.
How to Cancel Your Sales Tax Permit in
Minnesota
Are you allowed to cancel your sales tax permit in Minnesota?
You are allowed to cancel your sales tax permit in Minnesota. Fortunately, it seems that Minnesota allows you to cancel your sales tax permit if you no longer have sales tax nexus.
How long do you need to keep your sales tax permit in Minnesota if you no longer have sales tax nexus?
It appears Minnesota requires you to keep your sales tax permit for the duration of the month that nexus was established and the following eleven months. Thus, if you do not have activities that would create sales tax nexus for eleven consecutive months, you would no longer have sales tax nexus after that time and would be then able to cancel your sales tax permit.
How do you cancel your sales tax permit in Minnesota?
In order to close your sales tax permit in Minnesota, you will need to complete the process through the Minnesota e-Services portal, by emailing business.registration@state.mn.us, or by calling 1-800-657-3605.
Where can I go to learn more about canceling my sales tax permit in Minnesota?
You can learn more about closing your sales tax permit in Minnesota by reading how to close an account or business in Minnesota. You may also read Minnesota Revenue Notice #00-10 for guidance on when to cancel your sales tax permit due to no longer having sales tax nexus.
How to Cancel Your Sales Tax Permit in
Mississippi
Are you allowed to cancel your sales tax permit in Mississippi?
You are allowed to cancel your sales tax permit in Minnesota. However, Minnesota has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Mississippi if you no longer have sales tax nexus?
Mississippi has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Mississippi?
In order to close your sales tax permit in Mississippi, you will need to complete the process through the Mississippi Taxpayer Access Point (TAP).
Where can I go to learn more about canceling my sales tax permit in Mississippi?
You can learn more about closing your sales tax permit in Mississippi by reading Mississippi’s frequently asked questions (FAQs) about sales tax.
How to Cancel Your Sales Tax Permit in
Missouri
Are you allowed to cancel your sales tax permit in Missouri?
You are allowed to cancel your sales tax permit in Missouri. However, Missouri has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Missouri if you no longer have sales tax nexus?
Missouri has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Missouri?
In order to close your sales tax permit in Missouri, you will need to complete Missouri’s Final Report Form 5633, email the department at businesstaxregister@dor.mo.gov, or call 573-751-5860.
Where can I go to learn more about canceling my sales tax permit in Missouri?
You can learn more about closing your sales tax permit in Missouri by reading about how to maintain registration information in Missouri.
How to Cancel Your Sales Tax Permit in
Nebraska
Are you allowed to cancel your sales tax permit in Nebraska?
You are allowed to cancel your sales tax permit in Nebraska. However, Nebraska has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Nebraska if you no longer have sales tax nexus?
Nebraska has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Nebraska?
In order to close your sales tax permit in Nebraska, you will need to complete the Nebraska Change Request Form 22 or check the appropriate box to cancel your permit while filing your final sales tax return. You may also do this on the Nebraska Business Electronic Filing System.
Where can I go to learn more about canceling my sales tax permit in Nebraska?
You can learn more about closing your sales tax permit in Nebraska by reading about how to close your business accounts in Nebraska.
How to Cancel Your Sales Tax Permit in
Nevada
Are you allowed to cancel your sales tax permit in Nevada?
You are allowed to cancel your sales tax permit in Nevada if you are closing, re-structuring, or selling the business. You are not allowed to cancel your sales tax permit if you no longer have economic nexus.
How long do you need to keep your sales tax permit in Nevada if you no longer have sales tax nexus?
You need to keep your sales tax permit in Nevada even if you no longer have sales tax nexus. However, once it is established that you no longer have economic nexus, you are no longer required to collect and remit sales tax. At that point, you must still file all returns, however, you would mark all sales as exempt.
Nevada clarified this in their FAQ:
“The Marketplace Facilitator, Marketplace Seller or Remote Seller must collect Nevada sales tax starting on the first day of the first calendar month that begins at least 30 calendar days after the Marketplace Facilitator, Marketplace Seller or Remote Seller meets or exceeds the Nevada retail sales threshold. They must collect the tax through the end of the calendar year in which the sales threshold was met or exceeded as well as the entire next calendar year. If the Marketplace Facilitator, Marketplace Seller or Remote Seller that is registered fails to meet or exceed the sales threshold at any point in the second year, they are not required to collect and remit the tax in year three. They do not need to collect the tax; however, they still need to file a return to report their total sales in column A and exempt them out in column B.
If the Marketplace Facilitator, Marketplace Seller or Remote Seller meets or exceeds the sales threshold at any point in year three, they must begin collecting Nevada sales tax on the first day of the first calendar month that begins at least 30 calendar days after the seller met or exceeded the sales threshold.”
How do you cancel your sales tax permit in Nevada?
In order to close your sales tax permit in Nevada, you will need to complete the Nevada Sales/Use Tax Account Close Out Form.
Where can I go to learn more about canceling my sales tax permit in Nevada?
You can learn more about closing your sales tax permit in Nevada by reading Nevada’s marketplace facilitator/seller frequently asked questions (FAQs).
How to Cancel Your Sales Tax Permit in
New Jersey
Are you allowed to cancel your sales tax permit in New Jersey?
You are allowed to cancel your sales tax permit in New Jersey. However, New Jersey has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in New Jersey if you no longer have sales tax nexus?
New Jersey has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in New Jersey?
In order to close your sales tax permit in New Jersey, you will need to complete the New Jersey Change Tax/Employer Registration Records Form REG-C-L.
Where can I go to learn more about canceling my sales tax permit in New Jersey?
You can learn more about closing your sales tax permit in New Jersey by reading about how to end your tax registration in New Jersey.
How to Cancel Your Sales Tax Permit in
New Mexico
Are you allowed to cancel your sales tax permit in New Mexico?
You are allowed to cancel your sales tax permit in New Mexico. However, New Mexico has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in New Mexico if you no longer have sales tax nexus?
New Mexico has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in New Mexico?
In order to close your sales tax permit in New Mexico, you will need to complete the New Mexico Business Tax Registration form ACD-31015 or request cancellation through New Mexico’s online Taxpayer Access Point (TAP).
Where can I go to learn more about canceling my sales tax permit in New Mexico?
You can learn more about closing your sales tax permit in New Mexico by reading about how to close a business account in New Mexico.
How to Cancel Your Sales Tax Permit in
New York
Are you allowed to cancel your sales tax permit in New York?
You are allowed to cancel your sales tax permit in New York. However, New York has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in New York if you no longer have sales tax nexus?
New York has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in New York?
In order to close your sales tax permit in New York, you will need to complete a New York final sales tax return via New York’s Online Services portal.
Where can I go to learn more about canceling my sales tax permit in New York?
You can learn more about closing your sales tax permit in New York by reading about filing a final sales tax return in New York or by reading about amending or surrendering a Certificate of Authority (your sales tax permit).
How to Cancel Your Sales Tax Permit in
North Carolina
Are you allowed to cancel your sales tax permit in North Carolina?
You are allowed to cancel your sales tax permit in North Carolina. However, it seems that North Carolina does not allow you to cancel your sales tax permit unless you are closing a business or because of the seasonality of your business (i.e. you only do business a few months of the year and therefore do not need to collect & file sales tax for the months in which your business is not operating).
How long do you need to keep your sales tax permit in North Carolina if you no longer have sales tax nexus?
North Carolina likely does not allow you to cancel your sales tax permit if you no longer have sales tax nexus.
How do you cancel your sales tax permit in North Carolina?
In order to close your sales tax permit in North Carolina, you will need to complete the North Carolina Out-of-Business Notification Form NC-BN.
Where can I go to learn more about canceling my sales tax permit in North Carolina?
You can learn more about closing your sales tax permit in North Carolina by reading North Carolina’s frequently asked questions (FAQs) about sales tax.
How to Cancel Your Sales Tax Permit in
North Dakota
Are you allowed to cancel your sales tax permit in North Dakota?
You are allowed to cancel your sales tax permit in North Dakota. When North Dakota removed the transaction threshold from its economic nexus requirements, North Dakota allowed taxpayers who previously only had nexus due to the transactions threshold to cancel their permit. Thus, it is likely that any taxpayer who no longer has nexus can cancel their sales tax permit in North Dakota.
How long do you need to keep your sales tax permit in North Dakota if you no longer have sales tax nexus?
When North Dakota removed the transaction threshold from its economic nexus requirements, North Dakota allowed taxpayers who previously only had nexus due to the transactions threshold to cancel their permit on the effective date of the repeal of the transaction threshold. Thus, it would appear likely that a taxpayer can cancel their sales tax permit on the effective date of when their sales tax nexus expired, but North Dakota has not provided specific guidance.
How do you cancel your sales tax permit in North Dakota?
In order to close your sales tax permit in North Dakota, you will need to request cancellation of your sales permit via the North Dakota Taxpayer Access Point (TAP).
Where can I go to learn more about canceling my sales tax permit in North Dakota?
You can learn more about closing your sales tax permit in North Dakota by reading about North Dakota’s requirements for remote sellers' sales tax.
How to Cancel Your Sales Tax Permit in
Ohio
Are you allowed to cancel your sales tax permit in Ohio?
You are allowed to cancel your sales tax permit in Ohio. However, Ohio has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Ohio if you no longer have sales tax nexus?
Ohio has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Ohio?
In order to close your sales tax permit in Ohio, you will need to complete a final return on the Ohio Business Gateway portal by selecting “cancel my account” or by completing the Ohio Business Account Update Form if you already filed your last return.
Where can I go to learn more about canceling my sales tax permit in Ohio?
You can learn more about closing your sales tax permit in Ohio by reading about how to close your business accounts in Ohio.
How to Cancel Your Sales Tax Permit in
Oklahoma
Are you allowed to cancel your sales tax permit in Oklahoma?
You are allowed to cancel your sales tax permit in Oklahoma. However, Oklahoma has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Oklahoma if you no longer have sales tax nexus?
Oklahoma has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Oklahoma?
In order to close your sales tax permit in Oklahoma, you will need to mark the date of request cancellation on your final sales tax return via Oklahoma’s Taxpayer Access Point (TAP).
Where can I go to learn more about canceling my sales tax permit in Oklahoma?
You can learn more about closing your sales tax permit in Oklahoma by visiting Oklahoma’s homepage for sales tax.
How to Cancel Your Sales Tax Permit in
Pennsylvania
Are you allowed to cancel your sales tax permit in Pennsylvania?
You are allowed to cancel your sales tax permit in Pennsylvania. However, Pennsylvania has not given much guidance as to the applicable reasons for doing so other than for closing a business. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How long do you need to keep your sales tax permit in Pennsylvania if you no longer have sales tax nexus?
Pennsylvania has not given any definitive guidance as to when you can cancel your sales tax permit if you no longer have sales tax nexus. Generally speaking, you can close your sales tax permit in a state if you no longer have sales tax nexus there.
How do you cancel your sales tax permit in Pennsylvania?
In order to close your sales tax permit in Pennsylvania, you will need to use the “Enterprise Maintenance” feature found in the Pennsylvania Electronic Tax Information and Data Exchange System (e-TIDES) portal or complete the Pennsylvania Business/Account Cancellation Form REV-1706.
Where can I go to learn more about canceling my sales tax permit in Pennsylvania?
You can learn more about closing your sales tax permit in Pennsylvania by reading about how to close your business accounts in Pennsylvania.
Business owners already have a lot on their plates without worrying about differing laws across the myriad states in which they do business. When it comes time to cancel a sales tax permit, deciphering where to find the right information, especially across multiple states, is a headache and a burden.
We offer free initial consultations so that you can see how we can best assist your business with sales tax compliance. Schedule a consultation today and find out how TaxValet’s team of professionals can make sales tax easy!
