Oklahoma – Penalties for Sales Tax Evasion or Late Filing

SALT Report 1719 – The Oklahoma Tax Commission issued guidance regarding the penalties that will be imposed on anyone who violates the state’s sales tax laws. These penalties will apply to anyone who has an Oklahoma Sales Tax Permit.

Late filing – Failing to file a return within 15 days after the tax is due or within 10 days of a demand letter will be subject to a penalty of 10% – 25% of the original tax due.

Failure to file – Failure or refusal to file a return will result in a fine of up to $5,000, imprisonment for up to 1 year, or both.  Filing a False or fraudulent return will result in a fine of up to $5,000, imprisonment for 2 to 5 years, or both.

Failure to keep proper records – Providing fraudulent reports or returns, intentionally leaving areas blank, and providing a false affidavit to a vendor will result in fines of $1,000 up to $50,000, imprisonment for a minimum of 2 years up to 5 years, or both.

Failure to collect or remit sales tax – Failing or refusing to comply with and collect the full amount of sales tax levied, writing bad checks to the Department, rebating the collected sales tax to the consumer, or implying that the vendor will pay sales tax on behalf of the consumer will result in a minimum fine of $500 up to $5,000 as well as imprisonment for a minimum of 60 days up to 1 year.

Additional penalties have been enacted for misusing exemption certificates, using automated sales suppression devices, zappers or phantom-ware, or failing to file a return three times within a 24 month period.

For Further Information:

Oklahoma Tax Commission – 2012 Notice to Vendors of Penalties for Violating the Oklahoma Sales Tax Code