What Texas Form 00-985 (2013) Is For
Texas Form 00-985 (2013), Assignment of Right to Refund, allows a purchaser to pursue a tax refund directly. It applies when sales tax or use tax was paid incorrectly to a permitted seller.
The form transfers refund authority from the seller to the buyer under the Texas sales and use tax law.
Because sellers remit sales and use tax to the Texas Comptroller, you generally lack the authority to obtain refunds. Form 00-985 documents the assignment of refund rights and supports refund claims submitted to the state. It creates a clear record for tax compliance, refund checks, and protection against duplicate filings in the state of Texas.
When You’d Use Texas Form 00-985 (2013)
You use Form 00-985 when you paid sales tax without holding a sales and use tax permit. Typical cases involve tangible personal property purchased for exemption or resale. Without this form, a refund request must be handled only by the permitted seller.
The form is also required for certain amended Texas sales and use tax refund claims.
If you lacked a permit number during the filing period, an assignment becomes necessary.
Claims must be filed within the statute of limitations, also called the limitation period.
Key Rules or Details for 2013
Each vendor requires a separate Form 00-985 signed by an authorized representative. The assignment applies only to invoices, invoice number ranges, and tax periods listed.
Missing details can delay the processing of tax refund claims under Texas tax laws.
Refund claims must include Form 00-957, Texas Claim for Refund, and supporting documents.
These include invoices, sales journal records, general ledger entries, and copies of exemption or resale certificates. The Texas Comptroller rejects claims lacking complete documentation or a valid Assignment of Rights.
Step-by-Step (High Level)
- Step 1: Review invoices to identify incorrect sales tax or use tax charges on tangible personal property. Collect invoice numbers, proof of payment, and records supporting a refund request. Verify totals against your sales and use tax returns, a tax report, and the filing period.
- Step 2: Contact each permitted seller to request assignment using Form 00-985. Please verify the seller’s tax permit number, transaction dates, and amounts. Obtain authorized signatures to satisfy tax compliance requirements.
- Step 3: File Form 00-957 through the Texas Claim for Refund web form. Attach Form 00-985, Form 01-137 Limited Power of Attorney if used, and supporting documents. Please ensure the claim is submitted before the statute of limitations expires. Retain copies in Google Drive for recordkeeping and future reference.
Common Mistakes and How to Avoid Them
Correctable procedural errors often delay the filing of refunds. Clear identification of these mistakes and precise corrections improves tax compliance and claim approval rates.
- Late refund request: This mistake occurs when you file after the statute of limitations based on the tax report due date. You must calculate the filing period and submit before the limitation deadline.
- Missing required signatures: This error occurs when Form 00-985 is missing the authorized seller's signatures. You must confirm execution before submission.
- Incorrect permit identification: This mistake occurs when you omit invoices or proof of payment for tangible personal property. You must attach all required documentation.
- Incomplete supporting documents: This mistake occurs when invoices or proof of payment for tangible personal property are omitted. You must attach all required documentation.
- Unreported local jurisdictions: This mistake occurs when you exclude required local jurisdictions. You must identify every applicable local jurisdiction.
What Happens After You File
The Texas Comptroller reviews refund claims for accuracy and compliance with applicable laws and regulations. Processing time depends on the complexity, quality of documentation, and the filing method. Some claims are resolved quickly, while others require additional review.
Approved claims result in refund checks or electronic funds transfer payments. A Tax Refund Direct Deposit Authorization may be required for direct deposit. Offsets may be applied to outstanding liabilities under Texas tax laws.
FAQs
What is the purpose of Form 00-985?
It allows you to submit a refund request when a seller remitted tax. The seller assigns refund rights, supporting sales tax refunds and tax compliance with statewide requirements.
Do you need a sales and use tax permit?
You need Form 00-985 if you do not have a Texas sales and use tax permit during the filing period. Permitted filers report directly through their tax returns.
What forms accompany Form 00-985?
You must include Form 00-957 and supporting documents. Form 01-137 Limited Power of Attorney is required when an authorized representative files your claim under the Texas tax code.
How are approved refunds issued?
You receive refund checks or electronic payments after review. Payment timing depends on verification and the statute of limitations governing each refund request under Texas tax laws.
Can Form 00-985 apply beyond sales tax?
Yes. You may use it for tax purposes involving tangible personal property when sellers remit tax. Requirements follow the statewide filing standards of the Texas sales and use tax law.
