Do I include the sales we made if the State Taxes have been paid monthly?

[FSKLLC]

We are a LLC company that sell wholesale items. We pay out State resale taxes once a month. Do we still include these totals as income?

[AmyT · Accepted solution]

Since these are trust fund taxes and are not actually income to you, you do not need to include sales taxes in your gross sales.

The only exception to this would be if you have received a 1099-K or 1099-MISC that includes these amounts.  If this is the case, you would then include sales taxes collected and then treat the amount of sales taxes paid (that were treated as income) in the taxes paid section of expenses.