South Dakota Unfiled Sales Tax Returns Checklist

South Dakota Unfiled Sales Tax Returns Checklist

Introduction

An unfiled sales tax return occurs when a business required to collect and report sales tax to

South Dakota fails to submit a return by the state’s deadline. The South Dakota Department of

Revenue tracks filing compliance, and unfiled returns trigger administrative notices and possible collection action.

Failing to file a return notice can result in penalties, interest charges, and escalated enforcement. Understanding what this issue means and what steps to take can help clarify your filing status and options moving forward.

What This Issue Means

An unfiled sales tax return is a missing tax filing for a period when your business was legally required to report sales tax activity to the state. This may appear as a notice, a collection letter, or a record you discover when checking your account status with the South Dakota Department of Revenue.

Why the State Issued This or Requires This

South Dakota requires all businesses with a sales tax permit to file returns according to their assigned filing frequency, which may be monthly, bi-monthly, quarterly, semi-annual, annual, or seasonal. When a return is not filed by the deadline, the state’s system flags the account and begins administrative follow-up procedures outlined in the state tax code and administrative rules.

What Happens If This Is Ignored

If an unfiled return remains unaddressed, the state typically issues additional notices requesting the return or payment. Under SDCL 10-59-44, the Secretary of Revenue may revoke or cancel the sales tax license of any person who has failed to file a return or who has filed a return and failed to remit tax due. The state may pursue collection action, including liens, levies, or other enforcement measures, if the account continues to go unaddressed.

What This Does NOT Mean

An unfiled return notice does not mean criminal charges have been filed. It does not mean the state has already seized assets or frozen your accounts.

Checklist: What to Do After Receiving an Unfiled Sales

Tax Return Notice

Step One: Locate and Review the Notice

1. Find the unfiled return notice or collection letter from the South Dakota Department of

Revenue.

2. Identify the tax period listed as unfiled, such as a specific month, quarter, or full year.

3. Note any deadline stated in the notice for responding or filing your return.

4. Keep the notice in a safe place for future reference in communications with the state.

5. Check the letter for a case or notice number, or contact information.

Step Two: Verify Your Filing Requirements and History

Log in to your South Dakota sales tax account through the Department of Revenue’s online system if you have access. Review your filing history to confirm which periods show as unfiled or missing, and check your assigned filing frequency to understand what returns the state expects from your business.

Step Three: Gather Documentation for the Unfiled Period

• Locate sales records, invoices, or point-of-sale reports for the unfiled period.
• Collect records of any sales tax you collected from customers during that time.
• Gather documentation of any exemptions, exclusions, or non-taxable sales if applicable.
• Find records of purchases or credits that may reduce your sales tax liability.

• Organize this information by the specific month or quarter listed as unfiled in the notice.

Step Four: Prepare the Unfiled Return

Obtain the correct sales tax return form for your filing frequency from the Department of

Revenue website, or request it by mail if needed. Complete the return using your sales records and tax calculations for the unfiled period, review it for accuracy, and make a copy for your records before filing.

Step Five: Submit the Unfiled Return

1. Check the notice for instructions on where and how to file your sales tax return, whether online, by mail, or in person.

2. File the return through the state’s online filing system if you have an account and the option is available to you.

3. If filing by mail, send the return to the address listed on the notice or the Department of

Revenue’s website.

4. Include a cover letter that references the notice number and explains that you are submitting the unfiled return.

5. Keep a copy of any online confirmation or receipt, or use certified mail if sending by post, to document your submission.

Step Six: Address Payment of Any Tax Owed

Calculate the total sales tax liability shown on the unfiled return you prepared. A penalty of 10% of the tax liability is assessed if a return is not received within 30 days after the due date, with a minimum penalty of $10 assessed even if no tax is due.

Decide whether to pay the full amount immediately or contact the state to discuss payment options if you cannot pay in full. If paying, include an apparent reference to your permit number, the periods covered, and the notice number on your payment submission.

Step Seven: Contact the State If You Have Questions or Cannot Pay

Call the South Dakota Department of Revenue at the number listed on your notice. Provide your permit number and reference the specific notice or case number, then ask for clarification on any deadline, requirement, or calculation you do not understand regarding your filing requirements.

Step Eight: Monitor Your Account After Filing

Check your online account regularly to confirm that the state received and processed your return. Watch for any follow-up notices from the state within thirty to sixty days of filing your return, and continue filing on time for all future periods to prevent similar issues.

What Happens After This Is Completed

Once you file the unfiled return and pay any tax owed, the state typically processes the filing and updates your account record. If additional penalties or interest were assessed, a separate notice may explain those charges and any available options to address them through the state’s established procedures.

Common Mistakes to Avoid

Missing the deadline in the notice can result in additional penalties or collection action if the state sets a specific date for filing or responding. Filing an incomplete return may result in rejection or require resubmission, delaying the resolution of your unfiled status.

Failing to make a payment or underpaying the tax owed may keep your account in noncompliance and trigger further action from the state. Ignoring follow-up notices after you file can lead to escalation, so respond promptly to any additional letters or communications.

Frequently Asked Questions

What if I believe the unfiled period should not have been assigned to my business?

Contact the South Dakota Department of Revenue with your permit number and details. The state can review your permit history and filing requirements to confirm whether the unfiled period is appropriate for your business.

Can I file the unfiled return online?

South Dakota offers online filing through its revenue portal for permitted businesses. Visit the

Department of Revenue website to log in or set up an account if you have not already done so for electronic filing access.

What if I did not have any sales during the unfiled period?

File a return showing zero sales tax liability for that period. South Dakota requires businesses to file returns for each assigned collection period, regardless of whether sales tax was collected, and you must submit a zero return to document the period formally.

Will penalties be added to the unfiled return?

Penalties may apply depending on how long the return has been unfiled and on South Dakota’s administrative rules. Contact the state to ask about penalty relief if you believe circumstances warrant consideration under their procedures.

What if my business is no longer operating?

Contact the Department of Revenue to discuss closing or placing your business's permit in inactive status. The state may still require unfiled returns to be filed even if the company is no longer active or generating sales.

Closing

An unfiled sales tax return is an administrative matter that requires filing the missing return and addressing any tax liability owed to the state. Taking prompt action when you become aware of

an unfiled return helps prevent additional penalties and enforcement action from the Department of Revenue.

Facing State Tax Enforcement Action?

If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.