Wyoming – Vendor Credit for Early Payment of Taxes

SALT Report 1307 – The current issue of the Wyoming Department of Revenue’s publication, Taxing Issues, discusses Vendor Compensation Credits.  Pursuant to H.B. 147, vendors and direct payers will be allowed to take a credit on their Wyoming sales and use tax return to offset the cost of reporting tax to the state. This takes effect with the January 2012 reporting period.

Credit Amount and Requirements

The vendor compensation credit amount is equal to 1.95% of the first $6,250 due in taxes and 1% of any amount exceeding $6,250. The credit may not exceed $500 in any month regardless of the number of individual licenses held by the vendor.  For example, if a corporation owns five businesses, the vendor compensation credit allowed for the corporation is $500 total, not $500 per business.

Tax returns and payments must be postmarked by the 15th day of the month in which the tax is due. For example, the January 2012 return and payment must be postmarked by February 15, 2012. For vendors and direct payers filing electronically, the return and payment must be filed by February 15, 2012.

To qualify for the credit all vendor returns currently due must be filed and paid in full, and the account may not have any outstanding balances. If a vendor has entered into a payment arrangement for past-due balances, the payment plan must be current on all payments due. If the vendor is currently under audit, the vendor’s returns may still qualify for the vendor compensation credit so long as the audit balance is not delinquent.

Rejected and Amended Returns

If a return is rejected by the Department of Revenue because the return is miscalculated, unsigned, or unable to be processed for any reason, the vendor may still receive a vendor compensation credit, provided that the initial return was postmarked within the appropriate time period and a corrected return is filed by the new due date printed on the rejected return notice.

If a vendor amends a return that originally qualified for the vendor compensation credit, and the amendment results in additional tax due, the vendor is entitled to the vendor compensation credit on the additional tax due amount provided the amendment is filed before the 15th of the month the tax is due.

If the return is amended after the vendor compensation credit period, the vendor is not entitled to any additional vendor compensation credit on the additional tax due. The vendor will only receive credit for the amount reported on the original return.

If an amended return results in a reduction of tax due, the vendor compensation credit will be recalculated based on the reduced amount of tax due, regardless of when the amendment is filed.

Claiming a Credit

Sales Tax Forms 41 and 42 have been changed to add lines and spaces for calculating and claiming the vendor compensation credit. Vendors filing electronically will see a similar change to the Summary portion of the electronic return.

If the department receives a return in which a qualified vendor has not calculated a vendor compensation credit, the department will calculate the credit and notify the vendor of the credit amount on their monthly account statement.

For Further Information:

Wyoming Department of Revenue – Taxing Issues December 2011