Tax was charged on a sale by mistake, it is not applicable to my business. now what happens?

[macfdc99]

on my very first transaction Saturday, I entered a flat fee of X. I got an email on the sale and it itemizes $6 as sales tax, but my childcare services are not sales-taxable. will I get a bill from the FTB at year end?  I thought I had tax turned off in my settings but apparently not. thank you.

[VanKalkerFarms]

Would you be able to refund the sale and recharge? As a childcare provider, I'd assume you'd be able to contact the person you charged. That would refund the sales tax and eliminate the problem this time. You'll then want to adjust your sales tax settings. You can find details here. https://squareup.com/help/us/en/article/5061-modify-your-tax-settings

[macfdc99]

hmm, I can try. It was a drop-in/one time booking not regular client.  just wondering how it all works, if I'll get a 1099 or other bill, or what the worst case scenario could be. my accountant charges by the form and I really don't want to have to file another!

[VanKalkerFarms]

Square won't report your tax collected in any way, so it doesn't really matter. If at some point you were audited and they reviewed your Square records, they could ask about it, but I'd think it would be easily explained. It's a very small amount of money in the grand scheme of things. 

[macfdc99]

oh thank God.... I was stressing on the $45 per form for my accountant to process for a $6 erroneous tax collection!  thank you very much!