Preparation Checklist for Form E-500, Sales and Use Tax Return

Use this checklist to eliminate common errors when submitting your return to the Department. The Department also encourages you to use the online file and pay system to conveniently file and pay while eliminating other errors.

Checklist

  • 1

    Verify Tax Period

    Verify you complete the preprinted form for the correct tax period. If you do not have a preprinted form, access a blank sales and use tax return:  Form E-500, Sales and Use Tax Return. Do not change the period on a preprinted return. 

  • 2

    Verify Filing Frequency and Due Date

    The filing frequency and due date is located in the upper left hand corner of your preprinted form. Make sure your filing frequency and due date are correct.

    Filing Frequencies & Due Dates

  • 3

    Verify County Tax Rates

    Make sure you know the correct tax rate for the county or counties in which you operate a business, make deliveries, and ship products to customers. 

    Effective Dates of Local and Transit Sales and Use Tax Rates

  • 4

    File For Each Account Number and Tax Period

    You must file a separate return for each account number. If you do not owe any tax, a return is still required. If you registered as a seasonal filer, you are only required to file for the months selected on the application and any other months you have sales and use tax to report.

  • 5

    Do Not File A Paper Return if You File Online

    If you filed an electronic return for the tax period, you do not need to file a paper return.

  • 6

    Write Clearly

    Make sure you write clearly and complete the correct fields on your return.

  • 7

    Check Your Math

    Double check your calculations to make sure you did not make any errors.

    Note: If you file online, the system will perform the calculations for you.   

  • 8

    If You File Late, Calculate Penalty and Interest

    If you file and pay after the due date, review the instructions for Lines 16 and 17 to determine the penalties and interest due. You may also call our Customer Service number at 1-877-252-3052 to receive assistance on calculating your penalty and interest.

    Penalties and Interest

  • 9

    Complete the Entire Return

    Complete all of the fields that apply to your business.

  • 10

    Sign and Date the Return

    Sign and date the return in the appropriate space.

  • 11

    Prepare Check or Money Order

    Unless you pay online, you must pay by check or money order drawn on a U.S. (domestic) bank. Make your payment payable to the “NC Department of Revenue.” Do not mail cash, stamps, or postdated checks with your return.

  • 12

    Write the Period and Account Number on Your Payment

    Write the filing period and account number in the memo area of your check or money order. This does not apply if you file and pay online.

  • 13

    Verify Your Check Amount

    For returns requiring payment, make sure your payment amount equals the amount due on line 21 of your return.

    Note: If you are required to make prepayments, you must file and pay online and make a current period payment and a prepayment for the next period.

  • 14

    File and Pay On Time

    You must file your return and pay the tax due on or before the due date. If you do not file and pay on time, you are subject to penalties and interest.

  • 15

    If You Owe Tax for Multiple Counties, Complete Form E-536

    If you owe tax in more than one county, you must complete Form E-536. This includes operating retail locations in multiple counties, shipping products to multiple counties, or delivering products to multiple counties. In addition, you must complete Form E-536 if you owe tax to a county other than the county in which your business is located.  

    Form E-536 Schedule of County Sales and Use Taxes

  • 16

    If You Claim a Credit, You Must Include Documentation

    If you claim a credit on Line 20 of your return, you must include a detailed explanation and supporting documentation.

  • 17

    To Request a Refund, File Form E-588

    If you overpaid your tax liability for a previously filed period, complete Form E-588, Business Claim for Refund State and County Sales and Use Taxes.

    Form E-588, Business Claim for Refund State and County Sales and Use Taxes

  • 18

    If You Find You Underreported for A Prior Period, File an Amended Return

    If you made a mistake for a prior period and owe additional tax, file an amended return to correct the error. You may use one of the two preprinted forms marked “Amended Return” in the coupon booklet or write “Amended” at the top of a Form E-500. Write the correct amounts on your amended return. Amended returns cannot be filed online.