What Texas Form 00-985 (2014) Is For
Texas Form 00-985 (2014) allows you to claim a sales tax or use tax refund directly from the Texas Comptroller. It transfers legal authority through an Assignment of Right to Refund when the permitted seller remitted tax. This process supports refund claims involving sales and use tax when you do not hold a sales and use tax permit.
The form documents the assignment of the right to a refund from the permitted seller to you for a valid tax refund request. It applies to a Texas sales and use tax law administered under state tax code requirements. Completed forms, such as Form 00-957 or Form 00-957-Texas Claim for Refund, must accompany a refund claim.
When You’d Use Texas Form 00-985 (2014)
Use Form 00-985 when you pay sales tax incorrectly, and the seller does not issue a direct refund. You must request a refund from the seller before filing a Texas claim with the comptroller. This exemption applies to sales tax refunds, use tax errors, or incorrect charges across local jurisdictions.
People often use this form when they misinterpret exemptions, resale certificates, or taxable status during the purchase process. Examples include tangible personal property, online auctions, or taxable services misclassified on invoices. Certain Texas Education Freedom Accounts transactions may also require review under Texas tax laws.
Key Rules or Details for 2014
Refund claims must meet the four-year statute of limitations, also known as the limitation period. The filing period begins on the tax report due date, not the date of purchase. Incomplete submissions delay processing and may invalidate refund requests entirely.
Each permitted seller requires a separate assignment of rights to refund using Form 00-985. Authorized signatures must match the sales tax permit or the permit number on record.
Supporting documents, such as invoices, sales journal entries, or general ledger records, remain mandatory.
Step-by-Step (High Level)
- Step 1: Verify your claim under the Texas tax code to determine the filing period and note the applicable statute of limitations.
- Step 2: Review the seller’s tax report and your invoice for tangible personal property or services you paid for, then document the error. Request a refund from the permitted seller before filing a claim, and retain dated emails or letters as proof of your request.
- Step 4: If the seller declines, obtain a signed Form 00-985 as an Assignment of Right to Refund, ensuring that the names and amounts are accurate.
- Step 5: Complete Form 00-957 to state the tax refund amount, and attach supporting documents that match the periods for sales and use tax returns.
- Step 6: Submit everything to the Texas Comptroller using the Texas Claim for Refund web form, and track delivery and responses.
Common Mistakes and How to Avoid Them
Refund filings stall when assignments contain specific procedural defects that you can correct. Listing errors precisely and fixing them directly improves compliance and approval outcomes.
- Missing seller signature: This error occurs when Form 00-985 is missing an authorized signature. You must obtain a signature from an authorized representative tied to the permit number.
- Multiple vendors on one form: This mistake occurs when you list various sellers on a single assignment. You must prepare a separate Form 00-985 for each permitted seller.
- Late filing beyond the limitation period: This mistake occurs when you file a claim after the statute of limitations expires. You must file within four years of the tax return due date.
- Missing documentation: This mistake occurs when required invoices are omitted. You should attach invoices that fully support transactions involving tangible personal property.
What Happens After You File
The Texas Comptroller reviews refund claims for completeness and to verify legal ownership of the refund right. Accepted claims are subject to the statute of limitations while the verification process is ongoing. Auditors may request additional records, such as studies on predominant utility use or policy information.
Approved claims result in refund checks or electronic funds transfer through a Tax Refunds Direct Deposit Authorization. Outstanding liabilities, interest rates, or prior tax compliance issues may result in reduced payment amounts. Status updates are available through official comptroller communication channels only.
FAQs
What is the purpose of Form 00-985?
Form 00-985 allows you to obtain an Assignment of Right to Refund so you can file refund claims under the Texas tax code after the seller remits sales and use tax.
Do permitted buyers need Form 00-985?
No, you do not need Form 00-985 if you held a sales and use tax permit during the filing period for the tax report.
Can one form cover multiple vendors?
This mistake occurs when you list multiple vendors on one form; you must submit a separate Form 00-985 for each permitted seller.
How are refund payments issued?
Approved claims result in refund checks or electronic funds transfer, depending on your setup and compliance review by the comptroller.
Where are refund claims submitted?
You submit claims using the Texas Claim for Refund web form within the limitation period and attach records for tangible personal property and sales and use tax returns. You must track status using official reference numbers only.
