Hidden Cost for Retailers: Over-Filing Sales Tax Returns
Are you filing more sales tax returns than you really need to? For many retailers, the answer is yes, and the cost is higher than you think.
Filing More Returns Than Necessary
Retailers often assume if they have multiple store locations, or if they sell both in-store and online, they must file a separate return for each. In reality, most states allow consolidated filing for multiple locations and some offer centralized filing for multiple jurisdictions. That means one return could cover multiple locations or business activities, saving significant time and resources.
For retailers that keep the filing effort in-house, many states offer simplified filing systems for out-of-state or “remote” sellers. These simplified returns are significantly less time consuming than the “regular” returns. Yet, because these options are not well publicized preparers can spend hours unnecessarily on returns that could take them minutes.
Time Lost, Money Wasted: The Impact on Internal Resources
Every additional return or minute spent adds administrative cost and increases the chance of errors. A retailer filing multiple returns unnecessarily may:
Pay higher fees to compliance vendors who charge per return
Spend more internal staff time gathering, reviewing, and submitting data
Increase audit risk by increasing visibility
Put simply, over-filing means wasted money, wasted time, and more risk with no added compliance benefit.
The Simple Question That Changes Everything
One of the most powerful questions a retailer can ask is: “Are we filing more than one return in the state?” If the answer is yes, there may be opportunities to streamline.
Too often, businesses accept the status quo because “that’s the way we’ve always done it.” But a small change in filing approach can deliver meaningful savings year after year.
How CSH Helps Retailers Get It Right
At CSH, our State and Local Tax (SALT) professionals go beyond processing forms. We analyze your filing requirements, identify opportunities for consolidated or simplified filing, and help you cut unnecessary compliance costs. Where software-based vendors simply “check the box,” we dig deeper to make sure your filing approach is the most efficient, and compliant, path forward.
The result
fewer returns, reduced vendor fees, and more time for your team to focus on growing the business.
Simplify Compliance. Strengthen Your Bottom Line.
Retail sales tax compliance doesn’t have to be a drain on your resources. By asking the right questions and working with a trusted advisor, you can avoid over-filing, reduce costs, and strengthen compliance.
CSH’s SALT team specializes in helping retailers navigate state-by-state rules, optimize filing strategies, and stay compliant without overspending. If you’re ready to simplify your compliance and reduce unnecessary filings, let’s talk.
