REFUNDS - SALES AND USE TAX PAID THROUGH DEALERSHIPS

 

AUTHORITY:

Tenn. Code Ann. §§ 67-1-1802 

DESCRIPTION:

The Customer Refund Procedure establishes a process for filing a claim for refund directly with the Department of Revenue when a dealer is unresponsive or declines to credit or refund a customer who has erroneously paid sales or use tax to a dealer.

REQUIREMENTS:

A customer's claim for refund filed with the department must meet the following requirements:

• The claim for refund must exceed $2,500 per dealer.
• The dealer must have collected the tax from the customer and remitted it to the department.
• The customer must have requested a refund from the dealer on at least two separate occasions and the dealer either failed or declined to issue the refund.  The two requests must be documentable and be in written or electronic form.
• The customer's second request for refund from the dealer may be made upon written refusal from the dealer on the first request, or 30 days after the first request was submitted to the dealer. This allows the dealer time to review the initial request and either issue or decline the refund.
• Prior to filing a claim for refund directly from the department the customer must also request that the dealer complete a Dealer Attestation Form.

 Dealer Attestation Form:

• The customer's request for a completed dealer attestation form may be submitted with the second request for refund sent to the dealer, or at a later date.
• The dealer must attest to the following under penalty of perjury:
• The taxes were remitted to the Department by the dealer, including the amount and date remitted.
• The dealer has not claimed and will not claim refund of such taxes.
• The dealer has not taken and will not take credit for such taxes.
• The dealer's sales and use tax account number.
• The local jurisdiction or jurisdictions for which any local sales tax included in the refund claim was collected and remitted (amount remitted to each jurisdiction must be included).
• The customer must allow the dealer at least 30 days to complete or decline to complete the dealer attestation form. 
• Upon receiving a completed dealer attestation form or upon completion of the 30 day period, whichever comes first, the customer may the file a claim for refund directly with the department.

FORMS:

 Dealer Attestation Form  

 Claim for Credit or Refund of Sales or Use Tax Form  

• The completed form is to be filed by the customer. Please attach the completed form and attachments to your Claim for Refund form and mail to the Tennessee Department of Revenue, 12th Floor Audit Division, 500 Deaderick Street, Nashville, TN 37242.
• For assistance please contact the Department's Refund Unit at [phone]