Utah Admin. Code R861-1A-46 - Procedures for Purchaser Refund Requests Pursuant to Utah Code Ann. Sections 59-1-1410 and 59-12-110
(1)
Definitions.
(a) "Division" means the
Business Taxes and Discovery Division of the commission.
(b) "Purchaser refund request" means:
(i) a refund request for sales tax that was
overpaid; and
(ii) submitted by a
person other than the seller that originally collected and remitted the sales
tax to the commission.
(c) "Required information and documents"
means, for each transaction included in a purchaser refund request:
(i) a description of the item for which a
refund is requested;
(ii) the
invoiced transaction date;
(iii)
the taxable purchase amount;
(iv)
the tax rate applied to the purchase amount;
(v) the invoice number;
(vi) invoices or receipts or other books and
records that show the items purchased and sales tax charged;
(vii) the sales tax paid;
(viii) the reason and basis in Utah law for
exempting or excluding the item from sales tax;
(ix) documentation that verifies that the
item qualifies for a sales tax exemption or exclusion;
(x) the amount of sales tax
overpaid;
(xi) proof of payment of
sales tax, such as a canceled check, bank statement, credit card statement or
receipt, letter from the seller, or other books and records that demonstrate
payment was made;
(xii) if an agent
applies for the refund on behalf of a purchaser, a power of attorney;
(xiii) the name and address of the seller;
and
(xiv) a signed statement that
the seller that calculated and remitted the sales tax:
(A) has not provided a sales tax refund or
credit; and
(B) will not be asked
to provide a sales tax refund or credit.
(2)
(a) Except as provided in Subsection (3), a
person submitting a purchaser refund request shall include the required
information and documents with the application to the division.
(b) The items described in Subsection (2)(a)
shall be provided to the division in the format and manner prescribed by the
division.
(c) If the application is
not accompanied by the required information and documents, the division shall
send a notice to the person that submitted the purchaser refund
request.
(d) The notice described
in Subsection (2)(c) shall:
(i) indicate the
required information and documents that are missing; and
(ii) allow the person submitting the
purchaser refund request 30 days to provide the missing required information
and documents to the division.
(e)
(i) A
person submitting a purchaser refund request who cannot provide the information
and documents described in Subsection (2)(d)(i) within the time period
described in Subsection (2)(d)(ii) may contact the division to request an
extension of time to provide the required information and documents that are
missing.
(ii) The division shall
grant reasonable requests for extension that will not unnecessarily prolong the
processing of the refund request. If an extension is granted, the division
shall provide written notice to the person submitting the purchaser refund
request of the length of an extension of time granted under Subsection
(2)(e)(i).
(f) If the
division has not received the required information and documents within the
time period described in Subsection (2)(d), or if applicable, within an
extension of time granted under Subsection (2)(e), the division shall:
(i) evaluate the purchaser refund request
based solely on the required information and documents received; and
(ii) dismiss for lack of evidence requests
for refunds on items for which the division has not received the required
information and documents.
(g)
(i)
Dismissals under Subsection (2)(f) may be appealed to the commission.
(ii) On an appeal under Subsection (2)(g)(i),
the commission shall review whether information and documents adequate to
determine the validity of the purchaser refund request were received by the
division within the time period prescribed under Subsection (2)(d), or if
applicable, within an extension of time granted under Subsection
(2)(e).
(iii) If a person prevails
on an appeal under Subsection (2)(g)(i), the commission shall hold a hearing
for disposition of the underlying tax issue.
(3)
(a) At
the time a person submits a purchaser refund request, the person may request
the division use a sampling method in its review of the purchaser refund
request.
(b) A person requesting a
sampling method of review under Subsection (3)(a) shall include the following
information for each transaction included in the purchaser refund request with
the application to the division:
(i) the
invoice number;
(ii) the invoiced
transaction date;
(iii) the taxable
purchase amount;
(iv) the tax rate
applied to the purchase amount;
(v)
the sales tax paid;
(vi) the amount
of sales tax overpaid;
(vii) the
name and address of the seller;
(viii) a description of the item for which a
refund is requested; and
(ix) the
reason and basis in Utah law the item is exempt or excluded from sales
tax.
(c) The items
described in Subsection (3)(b) shall be provided to the division in the format
and manner prescribed by the division.
(4)
(a) If
the division and a person submitting a purchaser refund request agree to the
division's use of a sampling method in its review of the purchaser refund
request, the division shall:
(i) determine
the items that will be included in the sample;
(ii) notify the person submitting the
purchaser refund request of the items that will be included in the sample and
the information and documents that must be submitted to the division;
and
(iii) allow the person
submitting the purchaser refund request 30 days to provide the information and
documents to the division in the format and manner prescribed by the
division.
(b)
(i) A person submitting a purchaser refund
request who cannot provide the information and documents described in
Subsection (4)(a)(ii) within the time period described in Subsection
(4)(a)(iii) may contact the division to request an extension of time to provide
the information and documents that are missing.
(ii) The division shall grant reasonable
requests for extension that will not unnecessarily prolong the processing of
the refund request. If an extension is granted, the division shall provide
written notice to the person submitting the purchaser refund request of the
length of an extension of time granted under Subsection (4)(b)(i).
(c) Information and documents
described in Subsection (4)(a)(ii) that are not received by the end of the
period described in Subsection(4)(a), or if applicable, within an extension of
time granted under Subsection (4)(b), shall be:
(i) considered errors; and
(ii) included in the overall error factor by
which the purchaser refund request is decreased.
(d)
(i)
Errors under Subsection (4)(c) may be appealed to the commission.
(ii) On an appeal under Subsection (4)(d)(i),
the only matter that will be reviewed by the commission is whether information
and documents adequate to determine the validity of the purchaser refund
request were received by the division within the time period prescribed under
Subsection (4)(a), or if applicable, within an extension of time granted under
Subsection (4)(b).
Notes
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