Sales & Use Tax Recovery
Most businesses overpay sales and use taxes without realizing it. With over 12,000 tax jurisdictions in the US and constantly changing rules, errors are inevitable. We find and recover those overpayments – typically 1-3% of your total purchases.
Common Recovery Areas
We identify overpayments across all categories of purchases. Here are the most common areas where businesses overpay sales and use taxes.
Equipment, machinery, and supplies used directly in manufacturing are often exempt from sales tax. Many manufacturers overpay by not claiming these exemptions.
Many states offer exemptions for data center equipment, servers, cooling systems, and related infrastructure.
Shipping charges are often incorrectly taxed. We identify overpayments on freight, delivery, and handling charges.
Industrial utilities used in production processes may qualify for exemptions or reduced rates.
Real property improvements are often taxed as tangible personal property. We identify these misclassifications.
Items purchased for resale should not be taxed. We recover taxes paid on inventory and goods for resale.
Why Do Overpayments Happen?
Sales tax compliance is incredibly complex. Even well-managed companies with sophisticated accounting systems regularly overpay. Here's why:
Complex Exemption Rules
Each state has different exemption rules, and they change frequently. Vendors often don't know or apply them correctly.
Incorrect Tax Rates
With thousands of tax jurisdictions, vendors frequently apply the wrong rate based on ship-to vs. ship-from locations.
Taxable vs. Non-Taxable
The line between taxable and non-taxable items varies by state and is often misunderstood.
Missing Exemption Certificates
Even when you're exempt, vendors may charge tax if they don't have your exemption certificate on file.
Industries We Serve
We've recovered sales tax overpayments for businesses across all industries:
Our Recovery Process
We handle the entire recovery process from data collection to refund receipt, minimizing your time investment while maximizing your recovery.
Data Collection
We gather your accounts payable data, vendor invoices, and purchase records for the review period (typically 3-4 years).
Comprehensive Analysis
Our team analyzes every transaction to identify overpayments, missed exemptions, and incorrect tax rates.
Refund Claims
We prepare and file refund claims with vendors and state tax authorities on your behalf.
Recovery & Reporting
We track all refunds, provide detailed reporting, and help you implement processes to prevent future overpayments.
Real Results
See how we've helped businesses recover significant sales tax overpayments.
$50M annual purchases
Recovered overpayments on manufacturing equipment exemptions and utility taxes.
$120M annual purchases
Identified incorrect tax rates and recovered taxes on resale inventory.
$30M annual purchases
Recovered overpayments on data center equipment and software exemptions.
Frequently Asked Questions
Get answers to the most common questions about sales tax recovery.
Sales tax overpayments occur for many reasons: vendors applying incorrect tax rates, failing to recognize exemptions, taxing non-taxable services, or misclassifying transactions. With over 12,000 sales tax jurisdictions in the US, errors are extremely common.
Most states allow refund claims for 3-4 years of overpayments. Some states have shorter or longer lookback periods. We'll analyze your specific situation and maximize the recovery period available to you.
No. Requesting refunds for overpaid taxes is a normal business practice and does not increase audit risk. In fact, our documentation process often improves your overall tax compliance posture.
We work on a contingency basis – you only pay a percentage of the taxes we actually recover. There's no upfront cost and no fee if we don't find savings.
The initial analysis typically takes 4-6 weeks. Refund timelines vary by state and vendor, but most recoveries are completed within 6-12 months.
Discover Your Hidden Tax Recovery
Most businesses are surprised by how much they've overpaid. Schedule a free assessment and we'll provide an estimate of your potential recovery – with no obligation.