Reverse Audits

Taxing jurisdictions allow taxpayers to requests sales and use tax refunds either from the vendors that collected sales tax in error from the taxpayer, or from the taxing jurisdiction that received the sales tax in error from the vendor that remitted the tax. 

Also, taxing jurisdictions will allow a taxpayer to request a refund when use tax was paid in error to the taxing jurisdiction. 

Generally, tax refunds must be requested within three to five years from the time that the sales tax was erroneously paid by the taxpayer. Taxpayers that operate in multiple states with tax laws associated with their purchases that differ drastically from state to state are good candidates for reverse audits.

Michael has prepared about 50 sales and use tax refund requests in Florida, Louisiana, Maryland, Pennsylvania and Texas.