State tax refund
If I received a refund of an item I paid state (IN)sales tax on, is this recoverable?
Best Answer
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Hi Chainfall,
You’re correct that there isn’t typically a provision on the Indiana state tax return to claim a refund for sales tax on an item you returned or were refunded. In most cases, the refund of sales tax is handled directly by the seller, as they are the ones who originally collected the tax on behalf of the state.
If dealing with the seller continues to be difficult, you might consider contacting the Indiana Department of Revenue (DOR). They may be able to assist you with the process or provide guidance on how to handle the situation.
Answers
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If I received a refund for monies I paid state (IN) sales tax on, is the tax recoverable?
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Hi Chainfall!
Generally, if you receive a refund of the full price of an item, the seller of that item is usually required to refund you the state sales tax paid on that item.
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Am I correct in thinking that there is no provision on IN tax return to claim this?
Dealing With original seller has been a monumental pain
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Hey Chainfall!
I have read through multiple documents on the Indiana Department of revenue website and I found no provisions stating that tax should not be refunded when an item is returned. Indiana tax code: IN Code § 6-2.5-6-13.5 (2023) does seem to indicate the possibility of seeking a refund of an overpayment of sales tax, but it is recommended you seek the opinion of a tax attorney if you are unable to attain the refund from the seller and likely would be a more expensive route than the sales tax in question.
