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What happens if you do not file returns due or pay the amount due?
1. Penalty applies to returns filed late.
2.
Interest applies to the unpaid tax each month until paid in full.
3.
A revenue agent will attempt to contact you to resolve the delinquency.
4. The department may:
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Issue an assessment of the estimated tax, penalty, or interest.
File a notice of the tax lien with the register of deeds in any county. Any tax, penalty, or interest due from
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a taxpayer is a lien in favor of the state on all real or personal property and rights to property belonging to
the taxpayer.
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Issue a distress warrant directing the sheriff to seize your property to pay the debt.
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Revoke your tax license. It is a Class 6 felony to engage in business after the Secretary of Revenue has
revoked a tax license.
File a criminal complaint. Failing to file and/or pay one return within sixty days of the due date is a Class 1
misdemeanor. Failing to do so twice within a twelve-month period is a Class 6 felony. The sentence for a
Class 6 felony may be up to two years in prison and/or a $2,000 fine.
Refer any amount due to the State's collection agency for collection.
* If the business ownership is a corporation, limited liability company, limited partnership, limited liability
partnership, or limited liability limited partnership, the department may take these actions against any of
the corporate officers, member-managers or managers of limited liability companies, or partners of
partnerships.
What can you do to avoid becoming delinquent?
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Know your tax responsibilities and plan for them.
File electronically. Electronic filing reduces errors, saving you time and money.
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Pay careful attention to the due date on your tax return.
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Respond promptly to any Notice of Balance Due or Delinquency Notice sent to you.
. Open and read Department of Revenue correspondence sent to you; it may contain reporting instructions,
due dates, changes in laws or tax rates, or other important information that may affect your tax
responsibilities.
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Set up a separate bank account and regularly deposit collected retail sales tax or other taxes you may owe.
Withdraw the funds only when you pay the taxes.
Promptly notify the Department of Revenue if your address and/or phone number changes.
South Dakota Department of Revenue
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Sales and Use Tax Guide ⚫January 2022 • 17View entire presentation