What Texas Form 00-985 (2015) Is For
Texas Form 00-985 (2015) enables purchasers to claim a tax refund for sales tax paid in error, as permitted by statute. It applies when sellers are unable to issue sales tax refunds due to errors in sales and use tax rules. The Assignment of Right to Refund transfers refund claim authority from the seller to you under the oversight of the Texas Comptroller.
This form covers Texas Sales and Use Tax, including use tax paid on tangible personal property during the severe weather season. Examples include portable generators, emergency supplies, and fuel containers used for emergency preparation. Claims are processed through the Texas Comptroller of Public Accounts, subject to proper documentation and verification of the invoice number.
When You’d Use Texas Form 00-985 (2015)
You use Form 00-985 when sales tax was paid incorrectly, and the seller cannot process a refund request. This situation affects you when you lacked a sales and use tax permit at the time of purchase. The seller must assign refund rights before submitting a refund claim.
This form is commonly used for amended return situations involving corrections to sales and use tax returns. It applies when the seller refuses, is dissolved, or is unable to issue a tax refund. Timing matters because the statute of limitations determines eligibility for a refund.
Key Rules or Details for 2015
The Texas tax code imposes a strict four-year limitation period on refund claims. The period starts from the original due date on the tax report, not the discovery date. A complete Form 00-985 must be filed before expiration.
Each seller requires a separate assignment using the correct sales tax permit number. Names must match the sales and use tax permit records exactly. Errors delay processing and can invalidate refund claims.
Step-by-Step (High Level)
Step 1: Review purchases to identify incorrect sales tax. Confirm items like emergency supplies, first aid kits, carbon monoxide detectors, or fire extinguishers qualify as tangible personal property exemptions. Check invoices for accuracy.
Step 2: Request a direct refund from the seller. If the seller refuses or is unavailable, you must obtain Form 00-985 and complete the Assignment of Right to Refund. Verify permit details and signatures to protect refund claims.
Step 3: Prepare a Claim for Refund using the Texas Claim for Refund web form. Attach Form 00-985, records, and any amended return affecting sales and use tax returns. Track the statute of limitations and the limitation period.
Step 4: Submit the package to the Comptroller and request direct deposit using the Tax Refund Direct Deposit Authorization. Respond to questions, including refund hearing requests.
Common Mistakes and How to Avoid Them
Refund filings often stall because you submit forms containing specific procedural errors. Identifying these mistakes early improves compliance and speeds the approval process.
- Missed statute deadline: This mistake occurs when Form 00-985 is filed after the limitation period. You must calculate the statute of limitations from the original due date.
- Unsigned assignment form: This error occurs when the seller fails to include a required signature on the Assignment of Right to Refund. You must obtain an authorized signature before filing.
- Permit number mismatch: This error occurs when the sales tax permit number does not match the records of the Texas Comptroller. You must verify the number against sales and use tax returns to ensure accuracy.
- Missing payment documentation: This mistake occurs when invoices or proof of payment are not attached. You must include invoices, payment records, and amended return pages.
What Happens After You File
The Texas Comptroller reviews refund claims for completeness and to verify their eligibility. Smaller claims are handled centrally, while larger claims go to audit. The review may include utility-predominant use studies and adjustments to interest rates.
Approved claims are paid by check or direct deposit using Form 67-103 or Form 01-137. Some claims qualify for Instant Refund or Instant Reembolso processing. Processing time varies by complexity.
FAQs
Who signs Form 00-985?
The seller signs Form 00-985 as the assignor under the Assignment of Right to Refund. You do not sign it, and names must match sales and use tax returns exactly.
Can permitted buyers use this form?
You may use it only if you do not have a sales and use tax permit at the time of purchase. Otherwise, you must correct errors through an amended return process.
Does the use tax qualify for refund claims?
Yes, sales and use tax law allows refund claims for use tax paid on tangible personal property. You must document emergency supplies, such as first aid kits or fire extinguishers.
What if the seller is unavailable?
You cannot file a claim for a refund without a completed assignment. You should request seller cooperation early and closely track the statute of limitations.
How are approved refunds paid?
You may receive payment by direct deposit after filing the Tax Refund Direct Deposit Authorization or Form 01-137. Payment timing varies, and you may request a refund hearing if the dispute is under the tax code rules.
