During preparation for a California sales tax audit, we discovered that we have paid use tax on quite a lot of cost of goods items that were for resale and should not have been taxed. Is there a way to recover this use tax even though a few years have gone by since the purchase?
First, check California law. Most states have a limited amount of time that you can file an amended return. I would check that first, then file an amendment to the return(s) in question. Again, they probably have a procedure and forms for this.
Option 2, depending on the amount and the scutiny your return gets from your auditor or whoever, you could simply pay less on a future return. If you get audited by CA they would catch this and your outside accountant may not like it. Again, depends on your circumstances, tha materiality of the the amount, etc.
Lance
Point that fact out to the auditor when you meet with them. They should adjust their records and issue a refund. If they don't do this as a result of the audit, file amended Sales Tax returns as far back as CA Sales Tax Laws allow-probably three years.
Wayne Brasch
three years for most utility co refunds.. for mfg's whe discover they paid tax on utilities when they did not have to....
I don't believe this matter has anything to do with taxes on utilities. The original poster was talking about Use tax in CA. That is State Sales and Use Tax-not a utility tax.
Wayne Brasch
yea...i was thinking about sales tax on a utility bill....thanx......
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