While every importer in the country has been focused on the IEEPA federal refund process, the Court of International Trade as well as state tax authorities have been quietly monitoring these developments and preparing their own enforcement positions that could end up turning your IEEPA refund into a compliance snafu you never asked for in the first place. There is an unpleasant reality associated with the refunds you are expecting is this: if you collected sales tax on the goods you produced or imported, and then you receive a refund of the tariffs you paid out from the federal government, you may have collected sales tax on money that you never should have owed in the first place, meaning that there is a reasonable possibility that the state may require to have its share of this tax adjusted accordingly ; read on to find out more.
Are you looking for a best IEEPA refunds attorney? Please call us NOW at (314) 481-63338 to learn more about your legal options for justice and compensation as they relate to IEEPA refunds and the process. McCready Law is proud to announce that we have joined forces with Frost Law Arizona to help corporations and businesses that were unlawfully levied duties against during the February 2025 to February 2026 period, and thanks to the Supreme Court ruling, the government was ordered to pay back all these duties to over 300,000 affected businesses across the country. Our strategic partnership means we are able to assess your claim, consolidate your entries via an in-depth forensic audit to discover just how much the government owes you, file protective orders on your behalf, and even litigate your claim in front of the Court of International Trade should the government become recalcitrant about processing your IEEPA refunds. We offer the forensic audit at NO CHARGE as well as a 100% FREE initial consultation phone-call, and we work efficiently and ensure all your valid entries are presented as a complete dossier to CBP and relevant authorities, leaving you to focus on more pressing business matters. Need assistance with IEEPA refund rejections or processing? Call us NOW at (314) 481-63338 to speak with an experienced attorney and tax experts at no cost to you.
What About the Tax Implications of the IEEPA Tariffs Refund?
Here’s what you need to learn about the tax implications of your IEEPA refund:
Over 45 states levy sales and use taxes on the final sale of tangible personal property to end users or consumers, and in almost every one of these states, the taxable sales price is inclusive of “transportation, delivery, freight, handling, and other similar charges as well as any tariffs or duties imposed upon the product prior to sale. When you imported goods at the time IEEPA tariffs were in effect, the tariffs you paid had the sales tax remitted added unto the same once the goods were priced accordingly.
That said, now that the government ruled on the unconstitutionality of the tariffs and you’re set to receive refunds on the same, this means that you are being made whole. Therefore, if you collected sales tax on money the government was never supposed collected from you in the first place, this means that you may have over-collected sales tax. As of this writing, state tax authorities are already asking if that over-collection needs to be refunded either to your customers or remitted back to the state.
Why Documentation Always Saves the Day
If you’re the comptroller or CFO of a corporation that is involved in the importation and sale of products, you know by now that sales tax refund claims or defense strategy always starts with proper documentation. The documents will prove what you paid, what you collected and finally, what you recovered.
Here’s what you need to present:
- Your original cost and pricing records showing the tariff component that was included in your cost basis at the time of sale; without this, you cannot show that the refund relates to a specific tranche of good sold during a specific time period.
- Your sales tax returns for the period in which the affected goods were sold, as the statute of limitations for refund claims related to sales tax varies from one state to the next
- Customer contracts and invoices, especially those that have tariff pass-through or surcharge provisions, since the sales tax refund depends on whether the tariff was absorbed into the price or stated separately
- The federal tariff refund documentation inclusive of any protest filings since the state will need to verify the timing and amount of the federal refund prior to adjusting for any sales tax amount.
There is also the real and present risk of consumer class action that may allege that companies that received tariff refunds while retaining sales tax collected are participating in unjust enrichment. In fact, as of this article’s writing, there have already been several cases filed in numerous jurisdictions alleging exactly this.
Best IEEPA Tariff Refund Attorneys – Call Us Today!
No other law firm that is facilitating IEEPA tariff refunds is looking at the implications of sales tax and how that factors into your federal recovery aside from ours. McCready Law, in conjunction with Frost Law Arizona is pleased to announce our bespoke legal service where we map sales tax adjustments for every state, while at the same time preparing refund claims for large corporations that moved goods worth $200,000 and above. If your head is spinning as you read this but know you engaged in the importation of goods and raw materials from the period of February 2025 through to February 2026, we’re here for you; please call the country’s best IEEPA refund and tax expert attorneys NOW at (314) 481-63338 for the next steps to take. We perform FREE forensic audits on your IEEPA entries and tease out the tax responsibilities associated with the same. Remember, the call is 100% FREE, and there is no legal obligation. Thanks for choosing us, and we look forward to helping you.