Credit for Sales Tax: Back, Back, Back it Up

November 6, 2023

In this riveting edition of Weaver: Beyond the Numbers, host Brandon Hayes sits with Weaver’s Tony Burgess and Steven Scarborough to discuss sales and use tax. Uncovering the multiple avenues available for businesses that might have overpaid on their taxes, this episode provides insights and actionable advice for companies navigating this complex landscape.

Key Points:

  • Companies often overpay taxes and need methods to rectify these errors
  • Four approaches to reclaim overpayment are: direct state refunds, vendor refunds, tax return adjustments, and using credits during audits
  • Some states mandate vendor-first refunds. However, issues like poor vendor relationships can necessitate alternatives like “Assignment of Refund”


While many are familiar with the negative consequences companies face when underpaying sales and use taxes, only some are aware of the frequent overpayment situations that businesses encounter. Scarborough outlines four ways companies can address these overpayments, from direct refund claims with the state to leveraging ongoing audits to offset balances.

Burgess dives into the intricacies of each method, highlighting the potential challenges and advantages businesses might face. Especially significant is understanding how aggressive a company might want to be when pursuing these overpayments and the various implications of each approach.

Scarborough adds, “In most cases, they don’t want you just to put it as a credit on your return and let it wash into the current tax. Some states specifically need you to line it out on a section of the return. Some states will have you actually amend the prior period return.”

The world of sales and use tax is intricate and layered with complexities. Yet, by being proactive and informed, businesses can confidently navigate this realm. For deeper insights into the financial world and expert takes on pressing topics, subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.


Recent Episodes

Women's empowerment
View episode

With gender equality becoming a significant global agenda, the narrative around women’s empowerment is more relevant than ever. Amid rising awareness and shifting societal norms, women are increasingly seeking avenues for self-expression and empowerment. A recent study by the Global Gender Gap Report highlights that while progress is being made, substantial efforts are still […]

Tote pallet building systems are revolutionizing robotic palletization
View episode

With their focus on efficiency and simplicity, how are tote pallet building systems revolutionizing robotic palletization in modern warehouses? Joe McGrath, the Solutions Design Lead at Hy-Tek Intralogistics, delved into the transformative potential of tote-based systems within the broader ecosystem of pallet building. He highlighted the simplicity, repeatability, and reduced complexity that tote systems […]

Robotic pallet movers
View episode

The world of logistics is undergoing a major transformation, all thanks to robotic picking and stacking tech. These robotic pallet movers automate the stacking of products, thereby enhancing efficiency and accuracy in warehouses and distribution centers. As e-commerce continues to grow, the demand for quicker and more efficient operations is pushing the adoption of […]