Why Overpayments Happen

Overpayments happen for a variety of reasons, many of which are outside a business owner’s control:

• Misapplied Tax Rates: Incorrect rates applied to products or services.

• Missed Exemptions: Tax-exempt items or purchases being taxed due to missing exemption certificates or clerical errors.

• Vendor Errors: Vendors charging incorrect tax amounts without realizing it.

• Complex Regulations: Each state has its own rules, and keeping up with them is a full-time job.

Sales tax compliance is one of those tasks that businesses often view as routine—until mistakes come to light. Whether you’re a small local shop or a multi-state corporation, the complexities of sales tax laws and the intricacies of filing can easily lead to costly errors. While some mistakes result in underpayment and audits, many lead to overpayment, costing businesses thousands of dollars each year.

Sales tax compliance is a complex and often overlooked part of running a business. With ever-changing regulations, varying state rules, and the sheer volume of transactions, it’s no surprise that overpaid sales tax is common. Many businesses assume that these overpayments are gone for good, but at Indirect Tax Recovery, we specialize in uncovering and reclaiming those funds—even from years past.

One of the most frequent questions we receive is, “How far back can you go to recover overpaid sales tax?” The answer depends on the state. Each has its own statute of limitations, determining how far back claims can be filed. In this post, we’ll explore how these time frames work, why older overpayments matter, and how our expertise ensures no refund opportunity is missed.

Sales tax exemptions are one of the most powerful tools available to businesses looking to reduce costs. For manufacturing companies and businesses operating fleet vehicles, these exemptions can translate into significant savings—but only if you know how to use them.

At Indirect Tax Recovery, we specialize in uncovering overlooked exemptions that can save your business thousands, or even tens of thousands, of dollars annually. In this post, we’ll explore the potential exemptions available for manufacturing and fleet vehicles, why they’re often misunderstood, and how we can help you maximize your savings.