The Rhode Island Department of Revenue (DOR) has issued an advisory regarding changes to the state’s sales and use tax return for monthly and quarterly periods starting January 2023. The updated returns will allow taxpayers to reconcile sales each period, rather than at the end of the year. This is helpful for Rhode Island sales tax filers as it will eliminate the need for filing a separate annual reconciliation return at year-end. Although it is not mentioned in the advisory, note that the annual reconciliation for the 2022 tax year will still need to be completed as the changes take effect for returns beginning in January 2023.
Additionally, beginning January 1, 2023, “larger business registrant” taxpayers are required to file returns and remit taxes electronically for Rhode Island. A “larger business registrant” is any person who:
Businesses filing in Rhode Island should make note of this new requirement beginning in January 2023 if the business meets the criteria above and is not currently filing and paying electronically. Note that if you sign up for Rhode Island’s online Taxpayer Portal, you will need to obtain a PIN as part of the account setup. The PIN is sent via postal mail, so make sure to give yourself time to receive the PIN as you will not be able to access the account until you receive the PIN to validate it. (ADV 2022-22, Rhode Island Department of Revenue, Division of Taxation, September 12, 2022)