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Avalara Help Center

How do I get a refund for a tax credit I have in a state?

Overview

You paid excess tax to a jurisdiction and now have a credit with that jurisdiction. Avalara files for you in this jurisdiction and you want to have this credit refunded

Environment

Avatax Returns

Resolution

  • There are two options to utilize a credit on a state account.
    • Avalara can apply this credit towards future returns in that state until the credit it is used completely.
      • We would need a notice or documentation from the state that says a credit is due to you.
      • To have Avalara apply the credit toward your future returns, forward the notice or documentation of credit balance to avataxreturns@avalara.com
      • We can only apply a credit for a tax type that we are filing on behalf of your company. 
        • Examples:
          • If you have a credit for corporate tax, we cannot apply this to your sales tax return.
          • If you are filing sales tax but have a credit for sellers/vendors/retailers use tax, we cannot apply this credit.
    • You can contact that state/jurisdiction directly regarding a monetary refund.
      • Avalara is not involved in this process.
      • If you have a state credit with the following regions, please contact them directly for a refund as they cannot be processed on your return.

 

Note: Once the state credits are verified as valid and can be applied to future returns, they will be entered into the applicable state worksheets on the 5th of each month for returns filed that cycle. If your liability changes, liability is added or removed, please contact Support to notify our Reconciliations team of this. Necessary adjustments will need to be made to the credit amount to make sure as much of the state credit is used as possible without creating a negative return.