How Kintsugi Handles Penalties and Interest on Back Filings

Back filings are returns filed after the state's due date has passed. States charge penalties and interest when that happens. The state sets these amounts, not Kintsugi. This article explains how the back filing process works, what you will see in Kintsugi, and how penalties and interest get paid.

What is a back filing?

A back filing is a past due sales tax return that was not filed by its original due date. If Kintsugi began managing your account starting from a specific date, any unfiled returns from that start date up to the most recent period are considered back filings.

Example: If your effective registration date is January 2025, all unfiled returns from January 2025 through the most recently completed period would be considered back filings.

How the process works

Back filings reach your account one of two ways. You can request them yourself from Filings > Back Filings using Request Back Filings, selecting each state and the periods you want covered. The returns are created on the tab straight away. Or our team spots an unfiled period during a state portal review and asks whether you want us to prepare it.

When you request, a state marked Not available has no unfiled periods left to request, based on your registration date and the periods Kintsugi has already filed. It is not a penalty and interest category.

Either way, once your back filings are added to Kintsugi, you review and approve them directly in the app under Filings > Back Filings. For step by step instructions, see Manually Approving Unfiled Filings in the Kintsugi App (and What Happens to the Payment).

Here is what happens after you approve:

• Your back filings are queued for processing.

• We submit back filings within 6 to 8 weeks of your approval. Filings are processed in the order they are approved.

• You can track the status of your back filings anytime within the app.

Note: Back filings never approve themselves. Unlike your regular monthly or quarterly filings, a back filing waits in Unfiled status until you approve it, no matter how much time passes.

What you accept when you approve

Approving a back filing opens the Back Filing Terms. You have to accept these before anything is filed, and your acceptance is recorded. They restate the 6 to 8 week timeline and the penalty and interest handling described in this article, and they add two points worth knowing before you click:

• What you are approving. You confirm the listed periods and jurisdictions are the ones you want filed, and you accept that in states where the state allows it, Kintsugi remits both the tax due and the penalties and interest the state assesses, from the bank account on file.

• Fees. A fee applies to each back filing, based on your plan. The terms show the fee before you approve, and it is charged when the filing is submitted.

Your estimated penalties and interest

Each back filing in Kintsugi shows an Estimated P&I amount, so you can see it before you approve. This figure is an estimate only. It is not a final amount or a quote.

Interest accrues daily, and many states do not calculate the final amount until after they process your return. The final amount may differ from the estimate shown in Kintsugi.

The Back Filings tab also shows a Total to Pay column, which combines the tax due and the estimated penalties and interest so you can see the full figure for each return in one place.

If you approve a filing in a state where we remit penalties and interest with the return, Kintsugi sends that estimated amount from the bank account on file. Make sure sufficient funds are available when the return is submitted.

How penalties and interest are paid

How penalties and interest are paid depends on the jurisdiction. Each back filing in Kintsugi shows one of these two labels:

• Paid with return. Kintsugi remits the penalties and interest together with your tax return, from the bank account on file. Make sure sufficient funds are available when the return is submitted.

• State bills you later. The state processes the return and then sends you a separate notice for the penalties and interest, usually by post several weeks later. When the notice arrives, send Kintsugi a copy and we will remit it from that same account. The notice does not appear automatically in Kintsugi.

Most customers registered in several states will have some of each.

Which jurisdictions use which

When you receive a notice from a jurisdiction in the right hand column, send Kintsugi a copy so we can pay it for you.

Each filing also shows its own label, so if you are ever unsure which applies to a particular return, check the row rather than this table.

Why filing late still beats not filing

Staying compliant, even through back filing, is always better than leaving returns unfiled. Penalties and interest usually keep growing until the return is in, and unresolved filings can lead to potential enforcement from the state. Filing stops the clock.

FAQs

Q: Can I see my back filings in the app?
A: Yes. As long as the filing period falls within the time Kintsugi has managed your account, it will appear under Filings > Back Filings for your review and approval.

Q: How do I ask for a back filing in the first place?
A: Go to Filings > Back Filings and click Request Back Filings. Select the states and the specific periods you need, then submit. The returns appear on the tab straight away, ready for your approval. Anyone in your organization can submit a request.

Q: A state says Not available when I try to request. Why?
A: Based on your registration date and the periods Kintsugi has already filed, there are no unfiled periods left for that state. If you believe a period is still missing, reach out and we will check.

Q: Will I see penalties and interest before I approve?
A: Yes. Each back filing shows an Estimated P&I amount before you approve, and a Total to Pay figure combining that with the tax due. Keep in mind the P&I is an estimate. The state determines the final amount, often after the return is processed.

Q: Which bank account is used?
A: The one on file for your account, the same one used for your regular filings. This covers the tax due and, in states where we remit it with the return, the penalties and interest.

Q: When does the 6 to 8 week timeline start?
A: The timeline begins on the date you approve the filing in the app, not the date you requested it or the date the filing period ended.

Q: I approved weeks ago. Why does another back filing still say Unfiled?
A: Each back filing needs its own approval, and back filings never approve automatically. Check Filings > Back Filings for any returns still in Unfiled status and approve them there.

Q: What should I do if a penalty notice arrives in the mail?
A: Send Kintsugi a copy and we will remit it on your behalf from the bank account on file. This applies to jurisdictions labeled State bills you later, where the notice does not appear automatically in Kintsugi.

Need help?

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