A tax agency is a vendor to which you pay the sales tax that you collect. When you set up your sales tax items and rates, each one is associated with a tax agency. This ensures that the sales tax you collect gets paid to the correct tax agency. Depending on your sales tax requirements, you may need to set up only one tax agency or you may need to set up several different ones.
To do this task
Go to the Vendor Center.
Click New Vendor on the toolbar.
In the Vendor Name field, enter the name of the tax agency as you want it
to appear on your vendor list.
If you have an outstanding balance for sales tax payments that you currently owe to this tax agency, enter the opening balance and "as of" information.
Enter the address and contact information for the tax agency.
Click the Additional Info tab.
Click the Type drop-down list and select Tax agency.
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