If you are a seller who collected tax in error, the Comptroller cannot refund tax, penalty or interest until you have:
A seller who is due a tax refund can:
While waiting for a response about the approval or denial of your credit, keep filing sales tax reports and paying the tax due. If you fail to report and pay sales tax liabilities on time, you will be assessed penalties and interest on the unreported or unpaid amounts.
Even if you normally file the short form, to take a credit on a return, you must:
Example: You owe $100,000 in sales tax on your next return, but you are due a $20,000 refund because you overpaid tax on a previous return. You can report the $20,000 credit on the Credit and Customer Broker Schedule, and report tax due of $80,000 on the long form return. 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. Write "Amended Return" on the top of the form. You can also electronically file an amended return, even if it reduces the tax due of the original return filed. Additional documentation may be requested to validate your request.
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.
If a purchaser returns a taxable item to a permitted seller, the seller can claim a credit on their return or request a refund of tax, equal to the amount refunded to the purchaser, when the purchaser receives a full or partial refund of the price of the item returned to the seller. Refer to the Taking a Credit on a Future Return section above.
A permitted seller can assign a right to refund to the purchaser from whom the tax was collected in error, allowing the purchaser to file a refund claim directly with the Comptroller's office.
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.