Indirect Tax Recovery
Why Indirect Tax Recovery Matters
Overpaid taxes quietly drain cash flow, and most businesses never realize the loss. Sales tax, use tax, excise tax, and other indirect taxes are especially prone to errors that compound year after year.
At BlancPeak, our CPAs review prior filings, transactions, and exemptions to identify overpayments and secure refunds. We also strengthen compliance processes to prevent repeat issues — improving cash flow today while protecting your tax position going forward.
What's Included
- Comprehensive review of prior sales, use, and excise tax filings
- Identification of overpayments and refund recovery opportunities
- Preparation and support of refund claim documentation
- Improvements to compliance processes to prevent future overpayments
- CPA oversight to support compliance and audit readiness
We Help With
- Overpaid sales and use tax on business purchases
- Missed exemptions caused by incomplete or improper documentation
- Misclassification of goods or services leading to excess tax
- Unclaimed credits or refunds lost to filing deadlines
- Limited visibility into multi-state indirect tax exposure
Explore More Sales & Specialized Tax Services
Indirect tax recovery is just one area of our specialized tax support. Explore other services in our Sales & Specialized Tax category:
- Sals & Use Tax Compliance — accurate filings across states
- Nexus Discovery & Compliance — identify and manage multi-state obligations
- Audit Sampling & Compliance Review — defend your business during audits
- Excise & Property Taxes — specialized compliance for industry-specific taxes
- Sales Tax Exemptions — ensure exemptions are valid and defensible
FAQs: Indirect Tax Recovery
What is indirect tax recovery?
Indirect tax recovery is the process of identifying and reclaiming overpaid non-income taxes, such as sales tax, use tax, excise tax, and similar transaction-based taxes. It involves reviewing prior purchases and filings to uncover errors, missed exemptions, or unclaimed credits that may be refunded.
How do businesses end up overpaying indirect taxes?
Overpayments commonly result from misclassified purchases, vendors charging tax on exempt items, missing or invalid exemption certificates, or simple filing errors. For businesses operating in multiple states, inconsistent rules and changing requirements make these issues even more frequent and harder to detect.
How far back can refunds be claimed for overpaid taxes?
Refund look-back periods vary by state, but most allow claims for three to four years. Once a statute of limitations expires, refunds are permanently lost. Acting promptly is essential to preserve recovery opportunities.
Will filing for refunds increase my chances of an audit?
Not when handled properly. Refund claims are a normal part of state tax administration. Risk typically arises from incomplete documentation or unsupported positions. Our CPAs prepare claims with thorough records and clear support to reduce unnecessary scrutiny.
Is indirect tax recovery worth it for small businesses?
Yes. Even small businesses often recover meaningful amounts, particularly if they operate across states or purchase goods and services with frequent exemptions. Beyond refunds, the process strengthens compliance and helps prevent future overpayments.
