What Form 00-985 Is For
Form 00-985 is a legal document that transfers the right to claim a sales tax refund from the seller (who collected and remitted the tax) to the purchaser (who paid it). This form becomes necessary when you've overpaid or incorrectly paid Texas sales or use tax, but you're not the person or business that actually sent that money to the Texas Comptroller of Public Accounts.
The form establishes that the seller—called the "assignor"—is formally giving up their claim to the refund and authorizing you, the purchaser or "assignee," to request the money back from the state.
This assignment is especially common when purchasers don't hold an active Texas sales tax permit. Without that permit, you can't simply amend a return or take a credit like permitted businesses can. The only path forward is either:
- Getting the seller to refund you directly
- Obtaining this signed assignment form
The Comptroller requires this form because refunds go to whoever paid the tax to the state—not necessarily the person who bore the cost—so the assignment bridges that gap.
When You’d Use Form 00-985
Late or Amended Filing Scenarios
You'll need Form 00-985 whenever you ask a seller for a refund of sales tax you paid in error and the seller either:
- Refuses to refund you directly
- Provides this form instead
Common Situations
- Purchasing items later determined to be exempt
- Paying tax during a sales tax holiday
- Being incorrectly charged local tax
- Exempt organizations paying tax by mistake
When Filing Refund Claims
- Required when filing amended returns without a sales tax permit
- Must be attached to Form 00-957 (Texas Claim for Refund)
- One form required per vendor
Timing Rules
- Must be submitted within the four-year statute of limitations
- Clock starts when tax was originally due
- Late requests can permanently eliminate refund eligibility
Key Rules or Details for 2016
One Form Per Vendor
- Separate form required for each seller
- Each must be signed by authorized personnel
Statute of Limitations
- Four-year deadline applies strictly
- Clock stops only when a complete claim is submitted
Assignment Limitations
- Only transfers the right to file—not approval
- Supporting documentation is still required
Exempt Organization Restrictions
- Cannot claim refunds for purchases before exemption approval
- Audit determinations may affect eligibility
Step-by-Step (High Level)
Step 1: Contact the Seller
Request either:
- A direct refund, or
- A completed Form 00-985
Step 2: Seller Completes Assignor Section
Includes:
- Business name and address
- Texas taxpayer number
- Transaction details (date, item, tax amount, reason for error)
Step 3: Complete Assignee Section
You provide:
- Name or business name
- Address and contact details
Step 4: Signatures
- Both parties must sign and date
- Authorized signatures only
Step 5: Attach Supporting Documents
Include:
- Invoice copies
- Proof of tax payment
- Receipts or canceled checks
- Exemption documentation
Step 6: Submit the Claim
Submit via:
- Online refund system
Common Mistakes and How to Avoid Them
Waiting Too Long
- Delays risk missing the four-year deadline
- Start immediately after discovering the error
Missing Forms for Multiple Vendors
- One form per seller is required
- Missing forms can cause denial or delays
Vague Descriptions
Bad example:
- “Purchased equipment”
Better example:
- Detailed transaction description including item, date, invoice, tax paid, and exemption basis
Confusing the Form With the Claim
- Form 00-985 is not the refund claim
- Must be submitted with Form 00-957
Unauthorized Signatures
- Must be signed by someone with legal authority
- Invalid signatures can lead to rejection
What Happens After You File
Review Process
- Varies from weeks to months
- Additional documentation may be requested
Possible Outcomes
Approval
- Refund issued by check or direct deposit
- Adjustments may apply (penalties, credits, liabilities)
Incomplete Claim
- Missing information delays processing
- Statute of limitations continues running
Denial
- Written explanation provided
- Options include:
- Filing a hearing request
- Submitting additional evidence
Status Tracking
- Email or call Comptroller support for updates
FAQs
What’s the difference between the assignor and the assignee?
The assignor is the seller who remitted the tax and gives up the refund right. The assignee is the purchaser who paid the tax and receives the right to claim the refund.
Can I file a refund claim without Form 00-985?
No, unless you're only claiming local tax from a remote seller. Without a sales tax permit, this form is required.
What if the seller refuses to sign?
They are not legally required to sign. Options include:
- Negotiation
- Legal action
- Documenting attempts for future use
How long does the refund process take?
- Simple claims: a few weeks
- Complex claims: several months
- Faster processing depends on complete documentation
Can one form cover multiple purchases?
Yes, if from the same seller. However, all transactions must be clearly detailed.
Do I need to submit the original form?
- Copies are usually accepted
- Original signed version is recommended
- Keep a copy for your records
Does Form 00-985 expire?
The form itself does not expire, but:
- The four-year statute of limitations still applies
- Filing a complete claim is required to stop the clock
Sources
All information in this guide comes from official Texas Comptroller of Public Accounts publications and web resources, including:
- Sales Tax Refunds page
- Sales Tax Refunds FAQ
- Texas Claim for Refund instructions
- Publication 96-122, Nonprofit and Exempt Organizations