A seller who is due a tax refund can:
You must file Form 14-117, Texas Motor Vehicle Seller-Financed Sales Tax Report (PDF), to take a credit on a return. Reduce the amount of total receipts subject to tax and/or surcharge in row 2 by the total receipts of the items on which tax was paid in error.
EXAMPLE: You owe $100,000 in motor vehicle seller-financed sales tax on your next return, but you are due a $20,000 refund because you overpaid tax on a prior return. You can report tax due of $80,000 on this return. Total receipts subject to tax for all locations (line 2a) would be $1,280,000 ($80,000/.0625). Be sure to keep good records to show why and how the reduction was made.
You can also amend an original return you filed. Follow the instructions on the form used to file the original return. You cannot electronically file an amended return that reduces the tax due after the due date for the period being amended.
It is not necessary to file amended returns for separate periods in separate envelopes. For efficient processing, the Comptroller's office will review all the amended returns filed at the same time.
While waiting for a response about the approval or denial of your credit, keep filing motor vehicle seller-financed sales tax reports and paying the tax due. If you fail to report and pay motor vehicle seller-financed sales tax liabilities on time, you will be assessed penalties and interest on the unreported or unpaid amounts.
A permitted seller can assign a right to refund to a third party such as a creditor, settlement trustee, or successor entity. The Comptroller's office will treat the refund claim as if the original seller had submitted it. The assignee must comply with the same requirements as the seller when filing any refund claim, including the requirement to refund or credit tax paid in error to any purchasers.
You also need to ensure the refund you are requesting is within the statute of limitations. See Statute of Limitations section on this page.
Note: If the Comptroller is currently auditing you for motor vehicle seller finance tax, ask the auditor about including any refund in the audit. This may decrease the penalty and interest assessed in the audit and increase your refund.
To request a refund from the Comptroller's office, you must:
You may also need to provide the following:
Generally, a person or business has four years from the date on which the tax was due and payable to make a refund claim. However, the statute of limitations (the amount of time a person has to request a refund) may be extended if:
The statute of limitations keeps running unless a tolling event occurs. The statute of limitations is tolled (the clock stops running) when all refund claim requirements are met. See Refund Claim Requirements section on this page.
To file your claim electronically, email your request to firstname.lastname@example.org or mail it to:Texas Comptroller of Public Accounts
If you have questions about filing a refund claim or about a claim you have already submitted, call the Comptroller's office at 800-531-5441, ext. 34545.
The Comptroller's office uses supporting documentation to verify refund claims and can request additional information for each transaction during the verification process. The items can include, but are not limited to:
If the Comptroller's office requests that you submit invoices and you have more than 10, please provide these in a schedule format. Use the sample schedule (PDF) as a guide.
There are three possible outcomes to a refund claim: approved, incomplete or denied/partially denied.
After the Comptroller's office has approved a refund claim, we will mail a refund check to the person or entity entitled to the refund. Factors such as the timely filing discount, penalties, credit interest or an existing liability can affect the refund amount.
We will send a refund check unless the claimant is set up to receive refunds by direct deposit. If you have not already been set up for direct deposit, contact the Revenue Accounting Division at 512-463-4561 to obtain Form 74-221, Tax Refund Direct Deposit Authorization to initiate the process to receive payments electronically.
The statute of limitations will not be tolled (does not end) until a refund claim includes all of the required elements. The Comptroller's office will notify the claimant of the additional information needed.
The Comptroller's office will notify the claimant if the refund cannot be granted in full or in part and will identify the reason(s) for the denial. The claimant can contest the denial by requesting a refund hearing within 60 days of the denial.
If a refund hearing is requested timely, the Comptroller's office can issue a written demand notice for all documentation needed to verify the claim. This documentation must be submitted within 180 days of the date of the demand notice. Documents not timely submitted as requested by the demand notice cannot be introduced as evidence in a refund hearing.