Sales Tax Refunds
Refund Claim Dispositions
The disposition of sales tax refund claims will be by one of the three methods explained below.
After a refund claim has been validated and approved, a refund warrant will be generated and mailed to the claimant. There are several circumstances that could affect the amount of the warrant. The refund could be adjusted for the timely filing discount, penalties assessed, applicable credit interest due or an existing liability that may be owed for any tax type which will be offset by the refund.
The taxpayer will receive a paper warrant unless they are set up to receive refunds by direct deposit. Claimants interested in the direct deposit option must complete and submit Form 74-221, Tax Refund Direct Deposit Authorization (PDF, 355KB).
A refund claim that does not state fully and in detail each ground on which the claim is founded, does not identify the period during which the tax was paid in error, or that does not meet the requirements of the statute of limitations, does not toll the statute of limitations.
Additionally, if a Power of Attorney form or an Assignment of Right to Refund is required for a claim, and one is not submitted, the statute of limitations will not be tolled.
The Comptroller will notify the claimant of the additional information needed to toll the statute. Additional documentation needed by the Comptroller to verify the refund claim may be requested when the invoices and transaction involved are identified.
A refund claim that states fully and in detail each ground on which the claim is founded, identifies the period during which the tax was paid in error, and that meets the requirements of the statute of limitations will toll the statute of limitations. But, if the claim does not include the additional information and documentation required, the refund claim will be denied.
The Comptroller will notify the claimant if the refund, or partial refund, cannot be granted and will identify which requirements were not met. The claimant may request a refund hearing within 30 days of the denial.
If a refund hearing is requested timely, the Comptroller may issue a written demand notice for all documentation the Comptroller needs to verify the claim 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.