Sales and Use Tax

3 Years Just Became 10!

By August 29, 2019 December 17th, 2019 No Comments
The Brennan Group Sales and Use Tax Refund Claims

Major Missouri Sales & Use Tax Refund Decision

Missouri, in July, just passed a bombshell of a bill (SB 87) which extends the statute of limitations for tax refund claims from 3 to 10 years!!

A Tax Savings Opportunity

In most states, businesses can file a claim for erroneously paid sales & use taxes usually going back about 3 – 4 years. So this 10 year look-back decision is definitely raising some eyebrows!

When our Sales & Use Tax experts attended the Associated Industries of Missouri Tax, Manufacturing & Business Conference, where this potential law was presented, no one thought it would pass. Well here we are now with a huge opportunity to help companies find tax savings!

Bill Summary

Refund For Erroneously Paid Taxes: Current law allows a taxpayer to receive a refund for any tax, penalty, or interest that has been paid more than once, or has been erroneously or illegally collected or computed, provided such claim for refund is filed within three years from the date of over-payment. This act modifies such deadline to ten years. (Section 144.190)

The bill just went into effect Aug 28th, 2019 and no-one knows how this will shake out with the state. We suspect they will be flooded with claims, but how they will react and how they will push-back is still up in the air. Luckily for us, we’ve built a strong relationship with the Department of Revenue over the years and are confident we can acquire refunds.

Tax departments have been stretched thin recently as CFO’s and other department leaders are taking on a wider range of responsibilities. This combined with things like Missouri’s SB 87 or the nationwide Wayfair decision has created a hectic environment nearly impossible to stay on top of.

The Takeaway

Statutes are constantly changing in states across the country – How are you keeping track of them?

  • Are you on the look-out for potential refunds and exposures?
  • Review your AP record keeping – how many years back do you hold on to invoices and the like. Are they digitized for easy reference for when situations like this arise?
  • Most importantly, do you manufacture in MO? – With these new provisions about to go in effect, it can’t hurt to have someone take a deeper look for potential tax savings.

Visit our Sales and Use Tax page for more information on tax savings opportunities