Rhode Island Issues Guidance Regarding Discontinuation of Annual Sales Tax Reconciliation Return

The Rhode Island Department of Revenue (DOR) has issued an advisory informing sales tax permit holders that the Rhode Island Annual Sales and Use Tax Reconciliation Return (Form T-204R-Annual) will no longer be required for tax year 2023 and forward.

The updated sales tax return (Form RI-STR) introduced in late 2022 for periods beginning on and after January 1, 2023 allows taxpayers to reconcile sales each period instead of at the end of the year. This helps to ease the administrative burden on taxpayers, eliminating the need to file an additional return at year-end. Note that if a taxpayer is delinquent on a prior year filing, the annual reconciliation return is still required for tax years prior to 2023.

Filers of Form T-204A (for liquor stores) and T-204W (for writers, composers, artists) are still required to file those annual reconciliation returns covering the 2023 calendar year.

The advisory also notes that beginning January 1, 2023, “larger business registrant” taxpayers are required to file returns and remit taxes electronically for Rhode Island. For more information on this change, please see our previous news item. (ADV 2023-17, Rhode Island Department of Revenue, Division of Taxation, November 10, 2023)

Posted on November 28, 2023