Tax Refund Best Practices - Its No Longer a Walk in the Park
Thursday, October 29th, 2009
With recent decisions from Illinois, Virginia, New Jersey and recent professional experiences with California, Florida, Tennessee and Texas; one thing is certain - it is not as easy to obtain a refund or credit as it used to be.
More and more we are finding our clients waiting for or receiving negative responses from states on requests for tax recoveries. Even vendors, who in many cases are obligated to refund erroneously charged taxes, are dragging their feet citing the difficulty for them to recover the tax themselves.
Tax Recovery Best Practices:
- Regularly review your purchases for tax overpayments.
- Do your homework - have detailed descriptions of exempt purchases and laws to support.
- Insist on Vendor Issued Refunds (where possible) - Remember it was their error, not yours, that lead to the sales tax overpayment. Involve purchasing; often they can put pressure on the vendor that you as a tax professional can not.
- Be understanding - Also remember that the vendor's tax department is not going to be happy - this doesn't make them "look good." Be polite - sales tax and billing system limitations don't always permit the easy administration of accurate billings.
TTR provides comprehensive refund services and training surrounding refund claims.
Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.
TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.
TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.
Please visit TTR on the web at www.ttrus.com or call 866.578.8193.
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