Refunds & Overpayments

Recovering California sales tax overpayments

California businesses frequently overpay sales tax — collecting and remitting tax on transactions that are actually exempt, or paying use tax on purchases that don't require it. These overpayments often go unclaimed simply because businesses don't know to look for them.

We conduct systematic refund analyses across your transaction history to identify overpayments and file refund claims with the CDTFA to recover money you're owed. In many cases, refund recoveries significantly exceed consulting fees.

Common sources of overpayment

• Sales to exempt purchasers without proper documentation at time of audit
• Sales of exempt products or services incorrectly taxed
• Manufacturing and research equipment exemptions not claimed
• Resale transactions incorrectly treated as taxable
• Interstate and export sales taxed in error
• Use tax self-assessed on exempt purchases
• Tax collected in error from customers and remitted to the state

The refund claim process

Refund claims must be filed within the statute of limitations — generally three years from the due date of the overpaid return. We identify eligible periods, prepare and file the claim, and represent you through any CDTFA review or examination of the refund.

Industries with the highest refund potential

Manufacturing, technology, construction, healthcare, and agricultural businesses consistently have the highest overpayment rates due to the complexity of California's exemption rules in those industries. If your business operates in any of these sectors, a refund review is almost always worth conducting.