Effective Filing Calendar Changes

Some tax types, such as sales and use, support multiple filing frequencies: typically monthly, quarterly or annually. A tax authority may request a company filing quarterly or annually to file more frequently if their revenue increases. It's not as common for a taxpayer filing monthly to switch to quarterly or annually if the revenue decreases, but it is possible. If a tax role's effective filing calendar is changed, existing obligations for the previous filing frequency need to be adjusted or canceled.

When a change is made to the effective filing calendar for a tax role, the following obligation processing occurs:

If a new calendar is added or an existing calendar has its effective date moved back, obligations with a start date on or after the new effective date are canceled. If an obligation exists with a start date prior to the new calendar effective date and an end date after that date, the obligation end date is adjusted to be the new calendar effective date minus one day.
If a calendar is deleted or an existing calendar has its effective date moved forward, obligations with a start date on or after the changed or deleted calendar's prior effective date are canceled. If an obligation exists with a start date prior to the old calendar effective date and an end date after that date, the obligation end date is adjusted to align with the obligation's filing period end date.
New obligations are created to bring the tax role up to date for the effective calendar change as at the current business date, if required. Note that the system executes the same obligation creation logic that is invoked when the tax role is added. In this situation, the system creates obligations starting from the end date plus one day of the latest valid obligation after the adjustments described above are complete.