Our experience has been that companies may have significant overpayments of sales and use taxes available for refund so that every month that passes without filing refunds could mean substantial dollars lost forever, as the statute of limitations is four years.
There are numerous oilfield items that qualify for sales tax exemption that are regularly overlooked by vendors and accounts payable departments. These include certain processing equipment, certain oilfield chemicals, well servicing activities, real property services, and processing equipment repairs. Taxpayers are allowed to collect refunds of overpaid taxes for a period of four years. A company is highly likely to have many purchases falling under these exempt categories. We have been able to locate refunds for companies that have tried very hard to catch these specific types of over payments themselves, but the sheer volume of invoices flowing through their payables system precludes them from identifying all qualifying exempt purchases.
Most accounting departments do not have time available to pursue this type of time-consuming special project. We can take the time to properly review the company’s invoices and locate purchases that should be exempt and make the necessary filings with the vendors and Comptroller’s office to recoup the overpaid sales taxes without placing a burden on the accounting department personnel. We have found that the vendors will usually charge tax even if they are aware that the item may be tax exempt due to their concern of exposure on audit. Our review also allows us to educate the accounting personnel as to what is properly tax exempt so that you can stop paying tax on eligible items in the future.
One of our goals is to keep your company's time required for our review to an absolute minimum. Our review will be efficient and economically beneficial to your company.