Refund Recovery
Why Refund Recovery Matters
Overpaying sales or use tax is more common than most businesses realize. Complex state rules, missed exemptions, misclassified items, and vendor errors can quietly result in significant overpayments year after year. Without a reverse audit, these amounts often go unnoticed — leaving businesses paying more tax than required and never recovering the difference. At BlancPeak, our
At BlancPeak, our CPA team conducts detailed reverse audits to identify refund opportunities and recover overpaid sales and use tax on your behalf. Beyond the recovery itself, we evaluate your compliance processes and help strengthen systems to reduce future errors, improving cash flow while supporting long-term compliance.
What's Included
- Comprehensive review of prior filings to identify overpaid sales and use tax
- Identification of refund opportunities with complete supporting documentation
- Preparation and submission of refund claims to state tax authorities
- Evaluation and improvement of compliance processes to prevent repeat errors
- Recovered cash flow without creating new or unnecessary tax exposure
We Help With
- Misclassified items that were incorrectly taxed
- Missed exemptions that should have reduced tax liability
- Vendor errors that result in unnecessary overpayments
- Recurring reporting issues that increase risk over time
Explore More Audit Support Services
Refund recovery can intersect with broader audit and compliance issues. Explore other services in our Audit Support category:
- IRS Audit Representation — defend your interests in front of the IRS or state auditors
- Back Taxes Help — file missing returns, reduce penalties, and stop collections
- Voluntary Disclosure — resolve past tax exposure discreetly
- Managed Audit Programs — cooperate with state programs while protecting your interests
FAQs: Refund Recovery
How far back can refunds be claimed?
Refund claims typically reach back three to four years, depending on state-specific statutes of limitation. Waiting too long can permanently eliminate the ability to recover overpaid tax, which is why timing matters. Our CPAs identify the applicable look-back periods, prepare the required documentation, and ensure claims are filed before deadlines expire — maximizing recoverable refunds.
How do I know if my business has overpaid sales or use tax?
Most businesses are unaware of overpayments until a reverse audit is performed. Common causes include vendors charging tax on exempt items, misclassified purchases, or exemptions overlooked during reporting. Over time, even minor errors can compound into meaningful losses. A reverse audit provides clarity by reviewing prior filings against applicable state rules to identify where funds have been left unclaimed.
Does filing for refunds increase my risk of being audited?
Not when handled properly. Refund claims are a standard part of state tax administration, and states expect businesses to file them when appropriate. Risk typically arises from incomplete documentation or poorly supported claims. Our CPAs ensure each submission is accurate, well-documented, and aligned with state requirements — reducing unnecessary scrutiny and delays.
Are refunds guaranteed once identified?
Refunds cannot be guaranteed, as states independently review each claim and may request additional information. That said, claims supported by accurate records and professional preparation have a strong likelihood of approval. We manage state inquiries throughout the process and work to strengthen your position, even if only part of a claim is ultimately approved.
How can a reverse audit help my business beyond refunds?
The most lasting value of a reverse audit is prevention. By identifying the root causes of overpayments, businesses gain insight into gaps in their compliance processes. We don’t just recover funds — we help refine reporting practices, vendor coordination, and internal controls to reduce future errors, improve accuracy, and support long-term savings.
