# Credit for Sales Tax: Back, Back, Back it Up

By Business Services · Published 2023-11-06 · Updated 2026-03-12 · Professional AV on MarketScale
Canonical: https://www.marketscale.com/industries/pro-av/credit-for-sales-tax

> Companies that overpaid sales tax have multiple pathways to recover those funds and reduce future liabilities

## Key points

- Companies that overpaid sales tax have multiple pathways to recover those funds and reduce future liabilities

In this riveting edition of [*Weaver: Beyond the Numbers*](https://weaver.com/podcast), host **Brandon Hayes** sits with **Weaver**'s **Tony Burgess** and [**Steven Scarborough**](https://weaver.com/about/people/steven-scarborough) to discuss sales and use tax. Uncovering the multiple avenues available for businesses that might have overpaid on their taxes, this episode provides insights and actionable advice for companies navigating this complex landscape.

**Key Points:** 

- Companies often overpay taxes and need methods to rectify these errors
- Four approaches to reclaim overpayment are: direct state refunds, vendor refunds, tax return adjustments, and using credits during audits
- Some states mandate vendor-first refunds. However, issues like poor vendor relationships can necessitate alternatives like "Assignment of Refund"

Block Field

While many are familiar with the negative consequences companies face when underpaying sales and use taxes, only some are aware of the frequent overpayment situations that businesses encounter. **Scarborough** outlines four ways companies can address these overpayments, from direct refund claims with the state to leveraging ongoing audits to offset balances.

**Burgess** dives into the intricacies of each method, highlighting the potential challenges and advantages businesses might face. Especially significant is understanding how aggressive a company might want to be when pursuing these overpayments and the various implications of each approach.

**Scarborough** adds, "In most cases, they don't want you just to put it as a credit on your return and let it wash into the current tax. Some states specifically need you to line it out on a section of the return. Some states will have you actually amend the prior period return."

> In most cases, they don't want you just to put it as a credit on your return and let it wash into the current tax. Some states specifically need you to line it out on a section of the return. Some states will have you actually amend the prior period return.
> *— Steven Scarborough*

The world of sales and use tax is intricate and layered with complexities. Yet, by being proactive and informed, businesses can confidently navigate this realm. For deeper insights into the financial world and expert takes on pressing topics, subscribe and listen to future episodes of *Weaver: Beyond the Numbers* on [Apple Podcasts](https://itunes.apple.com/us/podcast/weaver-beyond-the-numbers/id1454557574?mt=2) or [Spotify](https://open.spotify.com/show/62oGgoc3SkSK8nNGM7Vq4A).

Tags: credit for sales tax, overpayments, Sales Tax, use tax, Weaver, Weaver: Beyond The Numbers

---
Source: MarketScale, https://www.marketscale.com/industries/pro-av/credit-for-sales-tax. Published for AI indexing and citation; cite the canonical URL. Site guide for agents: https://www.marketscale.com/llms.txt