The State and Local Returns page contains all the returns you file in each taxing jurisdiction.
Adding a single return
- Go to Settings > State and Local Returns and click Add return.
- Fill in the return details:
- Legal Entity: The individual or organization that is required by the taxing authority to file and pay returns.
- State: The state where the return is due.
- Return: The name of the return.
- Due Date: The due date to the tax authority. Sovos automatically assigns the due date based on taxing authority guidance, but you can choose to override it.
- Effective Month / Effective Year: The month and year when you want to start filing this return.
- Expiration Month / Expiration Year: The month and year when you want to stop filing this return. You only need to enter this information if you know you're going to stop collecting and remitting taxes in the jurisdiction on a specific date. Otherwise, select No end date.
- Filing Frequency: The frequency with which the return is required to be filed. Sovos Filing has the most common filing frequencies (monthly, quarterly, semi-annually, and annually) preset.
- Payment Type: The method of paying the amount of tax due.
- Filing Type: The format the tax authority requires the return to be filed as.
- State Registration ID / Local Registration ID: Your tax ID in the state and local jurisdictions. You need a tax ID in every jurisdiction where your business collects and pays taxes.
- Threshold Amount: Some tax authorities don't want you to file a paper return with a zero amount due. If you want to file this return with a positive amount only, select Return has a threshold and enter the minimum amount for the return to be filed.
- Auto Balance: Select this option if you want the gross amounts to be reconciled across state/county/city/district jurisdictions. Sovos Filing will automatically adjust the tax amounts by fractions of a penny so the gross amounts of the individual taxing jurisdictions add up to the total tax amount. The total tax amount on the return will not change.
- Related Forms: The forms that are related to this return, such as prepayments or sub-schedules.
- Login Information: If you're filing online via EDI or webfiling/efiling, you can enter your login information for the tax authority’s website in this section. This information will be displayed when you file the return.
- Customize Workflow: You can assign a user to each workflow stage.
- Preparer Notes: Use this field to note any additional information that should be taken into consideration during preparation or filing.
Some sections will only appear if they're relevant to the return you selected, like Auto Balance and Related Forms. - Click Save.
Adding multiple returns
- Go to Settings > State and Local Returns and click Import.
- Click Download template. You can also download a list of all returns available in Sovos Filing.
- Open the file that was downloaded onto your computer (Import_Return_Template.xlsx) and fill in the filing details for each return you want to add, then save your changes.
- Return to Sovos Filing and upload the edited file by dragging and dropping it into the box or clicking Browse and selecting it from your computer, then click Import.
If there was a problem with the import process, you'll get a message saying that your returns could not be created. Click View Report to download the Return Error Report, which tells you the exact errors that Filing encountered while importing your returns.