Refund Recovery
Free Evaluation - Instant Value with Key Analysis
Evaluating your operations and isolating areas of overpayment of sales or use taxes and managing the Claim for Refund of any such overpayments. The evaluation is free and if we do not find any areas of overpayment you still receive a free review of your operations.
Capabilities
Proven Results
Refund Recovery
What business records are needed for a sales tax refund review?
A thorough review typically draws on purchase invoices, exemption certificates, general ledger detail, fixed asset records, and prior tax returns. Davis Davis & Harmon LLC. uses these documents to identify transactions where tax may have been overpaid. The more complete the records, the more accurate the evaluation of potential recovery areas.
How far back can overpaid sales tax typically be reviewed?
Most states allow a look-back period of several years, though the exact window varies by jurisdiction and tax type. The evaluation examines historical transactions within the applicable statute of limitations to identify eligible overpayment periods. Each state sets its own rules, so the specific timeframe depends on where the business operates.
What industries commonly have overpaid sales or use tax?
Manufacturing, construction, healthcare, and retail businesses frequently overpay sales or use tax due to complex exemption rules and taxability distinctions on equipment, materials, and services. Companies with multi-state operations or specialized purchasing patterns are especially prone to overpayment, since tax rules differ significantly across jurisdictions.
What causes businesses to overpay sales or use tax in the first place?
Overpayments usually stem from misapplied exemptions, incorrect tax rates, vendor errors, or taxing items that should have been exempt under state law. Complex purchasing systems and frequent changes in state tax rules make these errors easy to miss without a dedicated review. A detailed evaluation is designed to catch these gaps.
How is a refund recovery evaluation different from a general tax audit?
A refund recovery evaluation looks specifically for overpayments a business can claim back, while a tax audit examines whether a business underpaid or miscalculated tax owed. The evaluation from Davis, Davis & Harmon focuses on isolating missed exemptions and errors that favor the taxpayer, not on assessing additional liability.