When a customer's tax consulting firm requests a blanket vendor's-right-to-refund assignment letter, must a schedule listing the specific invoices be attached at the time the assignment is sought or filed, in order to stop the refund statute of limitations from running?

Plain-English summary

This letter is itself a revision of an earlier March 24, 1999 response, prompted by concerns about "blanket refund assignment letters" that a tax consulting firm was requesting on behalf of one of the vendor's customers. The specific procedural question: when the assignment letter is filed with the Comptroller (which stops, or "tolls," the refund statute of limitations from continuing to run), does a schedule listing the specific invoices covered by that assignment need to be attached at that same time?

The clarified answer: no, the invoice schedule is not required at the time the blanket refund assignment is sought or filed in order to toll the statute of limitations -- the assignment letter itself is enough to stop the clock. But the schedule isn't optional forever: it should be provided to the vendor for the vendor's own review, and it must also be provided to the Comptroller before the refund claim is actually reviewed. In other words, the schedule is a documentation requirement for the refund's substantive review, not a condition for preserving the claim's timeliness.

What this means for you

Vendors receiving blanket refund assignment requests from customers or their tax consultants

You can accept and file a blanket assignment letter to preserve the statute-of-limitations clock without needing a complete invoice schedule in hand at that moment -- but plan to assemble and provide that schedule before the Comptroller actually reviews the refund claim, and make sure you personally review the schedule too.

Tax consulting firms preparing refund assignment letters for clients

Don't let the absence of a finalized invoice schedule delay filing a blanket assignment letter if the statute of limitations is a concern -- file to toll the clock first, then follow up with the supporting schedule before the substantive review stage.

Accountants and tax professionals

A useful procedural clarification distinguishing what's needed to preserve a refund claim (the assignment letter alone) from what's needed to actually process it (the invoice schedule) -- worth keeping in mind for any refund claim under time pressure near the statute of limitations deadline.

Common questions

Q: Does a blanket refund assignment letter need an invoice schedule attached to toll the statute of limitations?
A: No, the assignment letter alone is sufficient to toll the statute at the time it's sought or filed.

Q: Is the invoice schedule ever required?
A: Yes -- it must be provided to the vendor for review and to the Comptroller before the refund claim is reviewed.

Q: Can I rely on this letter for my own refund assignment situation?
A: No. It is based on the specific facts presented and can only be relied on by the taxpayer to whom it was issued.

Citations and references

This letter applies general Comptroller refund-assignment procedure; it does not cite a specific numbered Tax Code section or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9904305L

Original ruling text

April 12, 1999

Dear **:

This is to revise my March 24, 1999 response to your letter concerning possible
problems with blanket refund assignment letters being requested by a tax
consulting firm representing one of your customers.

In my response, I addressed the need for a schedule listing the invoices on
which an assignment from your company is being sought. This schedule is not
required at the time the blanket refund assignment is sought or filed with the
Comptroller to toll the statute. However, the list should be provided to you
for your company's review, as it must also be provided to the Comptroller prior
to the time that the refund is reviewed.

This opinion is based on the facts presented. Other facts though similar may
provide a different result.

I hope this information answers your questions. If you need additional
information, please call me toll-free at 1-800-531-5441, extension 3-4502. The
direct line is 512/463-4502. You may also write to Tax Policy Division,
Comptroller of Public Accounts. You may also e-mail our tax help section at:

Sincerely,

Gilbert Zamora
Tax Policy Division

cc: Harold Lee, Director, Tax Administration
Ledford Kelly, Audit
David Rock, Audit
Adina Christian, Sales Tax Policy