Scenario: customer remitted consumer use tax on on a purchase to the DOR
Customer then returned the item back to the vendor a month later. Customer did not get the consumer use tax rate refunded back to them (as they had remitted it to the state not the vendor)
Customer is now looking for guidance on how to get that remitted amount back.
There are typically two options in this scenario:
The best Practice is to approach the Department of Revenue directly for either a refund of the tax remitted or filing an amended return.
Another option, though not recommended, is to Credit out the transaction in the current liability period with a tax only credit memo.
This will effectively short pay the state. Again this is not recommended and it is HIGHLY suggested that an extremely clear and thorough audit trail is kept on record as to the reason why this is done.