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pmilligan
Returning Member

Cannot Reconcile LLC Balance Sheet due to late 2019 sales tax paid in 2020

Hello! I have a somewhat unique situation. I have an LLC that was formed in 2019, and due to personal errors I did not pay New York State sales tax that was due in 2019, in the amount of around $6,050. I ended up paying this sales tax late, in 2020, along with around $450 in interest/late fees.  This was sales tax remitted to the state on services the LLC sold, not on things the LLC purchased. 

 

As a result, my balance sheet is all out of whack, because I don't see anywhere to enter these NYS tax payments made, making it look like my partnership should have $6500 more than it actually does in it's account. 

 

Please help! Many thanks in advance for your time. 

 

-Patrick

3 Replies
martinmarks
Level 9

Cannot Reconcile LLC Balance Sheet due to late 2019 sales tax paid in 2020

Your cash account? That had to decrease because of this expense.

pmilligan
Returning Member

Cannot Reconcile LLC Balance Sheet due to late 2019 sales tax paid in 2020

Hello, thank you for your reply! 

 

The problem is that I can't find where on Turbotax Business (form 1065 partnership tax return) to enter these late sales tax payments, and so on Turbotax, my balance sheet does not reconcile. 

 

In real life, my LLC's bank account has $29 in it. But in Turbotax, it looks like it should have ~$6500 because I have not found where to enter the late taxes and fees I paid.  

martinmarks
Level 9

Cannot Reconcile LLC Balance Sheet due to late 2019 sales tax paid in 2020

Understood but the money had to come from somewhere and there's no place to enter the payments because they don't belong on the return....they're pass throughs as sales tax that are collected from customers and paid to the taxing authority. Your balance sheet can reflect the payments but the $$ to pay the taxes came from an asset account or was borrowed.

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