Sales and Use Tax Recovery

Request Sales and Use Recovery Services

Recover Overpaid Taxes

It is not uncommon for businesses with $100M+ in spend to overpay $500K in sales & use tax annually. This financial leakage negatively impacts your profit margins and also leaves your business vulnerable to recurrent and unnecessary internal mistakes.

What is a Reverse Sales and Use Tax Audit?

A reverse sales and use tax audit is the process of reviewing previous years of purchase data in an effort to find erroneous sales or use tax charges or accruals. Generally, these errors are due to a misapplication of tax laws by the seller or oversight of an exemption provided by the state.

Tax recovery

How Far Back Does
a Reverse Sales Tax Audit Go?

The statute of limitations varies from state to state.  Some states, like NY, carry a three-year look back, while others, like NJ, have a four year-year lookback period. Additionally, clients going through a sales tax audit can have an extended lookback period to offset the current audit period.

How Often Should You Complete a Reverse Sales Tax Audit?

A typical reverse sales and use tax audit should be completed every 2-3 years.

r&d tax credit financial services

How Can We Help?

Source Advisors can provide you with a team of Recovery Engineers to close this gap. Recovery Engineers assist companies with locating and recovering overpayments and assist in process improvements to ensure it does not happen again. Our team has over 20 years of experience and has helped companies identify and recover over $200M in sales tax.

When it comes to sales and use tax, size doesn’t matter. Our team has had success in finding $250K in overpayments for companies with as little as $25M in revenue.


Financial Services Company



Consumer Products Company



Food Products Company



National Retailer


National Real Estate Owner Operator


Frequently Asked Questions

What is Sales Tax Recovery?

Sales Tax Recovery is the process of reviewing previous years’ of spend data for a company to find purchases that the seller charged erroneous sales tax on or the purchaser accrued erroneous use tax on.  Generally, these erroneous sales or use tax charges are due to a misapplication of the tax laws or due to overlooking of an exemption provided by the state.

What is the statute of limitations for filing a refund claim for overpaid taxes?

The statute of limitations varies from state to state. Some states, like New York, carry a three-year lookback, while others, like New Jersey, have a four-year lookback period.  If a company has an on-going audit, any period that the taxing authority has open under audit is also open for a Reverse Sales & Use Tax Audits (RSUTA).

What type of information do you need to complete an Reverse Sales & Use Tax Audit (RSUTA)?

To start Sales Tax Recovery you need a report that details all the purchases made by the company for the period in review, and you need access to the company’s ERP / invoicing system.  If you find refund opportunities, you may need additional information (i.e., vendor contract) to finalize a refund claim.

Contact Source Advisors for a Free Assessment

Embrace the power of tax credit savings with Source Advisors and propel your business towards growth and success. Partner with us today to unlock your company’s full potential.