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The Florida tax refund process is governed by strict procedural requirements. To initiate a refund, a business must file a written claim with the Florida Department of Revenue, often using Form DR-26 (Application for Refund). The claim must include:

• The specific tax type and amount sought
• The tax period involved
• Supporting documentation showing the overpayment
• A statement of legal basis for the claim

Refund claims must be filed within the applicable statute of limitations, which is generally three years from the date the tax was paid. Once a claim is submitted, the Department may review records, request additional documentation, or issue a notice of intent to deny.

Our firm works with clients to file well-documented and legally sound refund claims from the outset—minimizing delay and maximizing the likelihood of approval. When refund claims are challenged or denied, we guide clients through administrative appeals and, when necessary, litigation.

Common Florida Tax Refund Claims

Florida businesses may be entitled to refunds of state taxes for a variety of reasons. Common tax refund claims include:

Sales and Use Tax Refunds – Refunds for tax collected on exempt sales, tax paid on purchases for resale, use tax paid on non-taxable items, or tax collected in error by vendors.

Corporate Income Tax Refunds – Overpayments due to misapplied apportionment formulas, failure to claim allowable deductions or credits, or retroactive adjustments following an audit or amended return.

Transient Rental Tax and Tourist Development Tax Refunds – Refunds for short-term rental taxes incorrectly collected or remitted.

Fuel Tax and Communications Services Tax Refunds – Specialized refund claims involving fuel usage or telecommunications services.

Duplicate Payments and Clerical Errors – Simple overpayments made due to accounting mistakes or system errors.

We assist businesses across industries in identifying refund opportunities and recovering funds lawfully owed by the Florida Department of Revenue.

Florida Sales Tax Refunds

Sales and use tax refunds are the most common type of refund claim in Florida. These refunds may arise when a business:

• Paid sales tax on exempt items such as raw materials, manufacturing equipment, or resale goods
• Was assessed use tax on goods later returned or exported
• Collected and remitted sales tax in error on non-taxable services or interstate transactions
• Paid sales tax directly on items that should have been exempt under Florida law

Sales tax refund claims require detailed documentation, including invoices, exemption certificates, and proof of remittance. The Department closely scrutinizes these claims and may deny them for technical or procedural reasons. Our firm helps businesses prepare complete and accurate sales tax refund claims and challenges denials through protest and appeal when necessary.

Florida Corporate Income Tax Refunds

Florida corporate income tax refund claims are often more complex and involve amended returns, multi-state apportionment issues, or deduction errors. Businesses may be entitled to a refund if they:

• Used the incorrect apportionment method on their original return
• Failed to claim available deductions or credits
• Were assessed tax on income not attributable to Florida
• Corrected federal taxable income after filing the Florida return

Because corporate income tax disputes often arise during audits or following adjustments to federal returns, it is important to carefully coordinate the refund process with supporting documentation. We assist clients in calculating refund amounts, filing amended returns or DR-26 applications, and challenging disallowed corporate tax refunds.

Challenging Refund Denials from the Florida Department of Revenue

The Florida Department of Revenue follows a formal process when evaluating and potentially denying tax refund claims. Businesses that receive a denial do not have to accept the outcome—Florida law provides multiple opportunities to protest and reverse a refund denial through administrative and legal procedures. These steps are governed by Florida statutes, administrative rules, and the FDOR’s official protest guidance.

Notice of Proposed Refund Denial
Once the Department reviews a submitted refund application—typically Form DR-26 or an amended return—it may issue a Notice of Proposed Refund Denial. This notice outlines the FDOR’s intent to deny the refund claim and explains the Department’s rationale. It is not a final action but provides the taxpayer with the opportunity to respond and submit additional documentation or legal argument.

Filing a Protest of Refund Denial
Taxpayers have 60 days from the date of the Notice of Proposed Refund Denial to file a written protest under Section 213.21(1)(a), Florida Statutes. The protest must clearly state the taxpayer’s disagreement with the Department’s position and should include:

• A detailed explanation of the legal and factual basis for the refund
• Supporting documentation (invoices, exemption certificates, returns)
• References to applicable Florida statutes or rules
• A request for an informal conference, if desired

Informal Dispute Resolution (IDR) and Oral Presentation
Taxpayers may request a conference as part of the protest process. This Informal Dispute Resolution (IDR) meeting gives businesses the chance to present their case orally to a conferee. While not mandatory, IDR conferences can be helpful in explaining complex issues, resolving factual misunderstandings, or narrowing legal disagreements without further escalation.

Notice of Decision of Refund Denial
Following its review of the protest and any IDR conference materials, the FDOR will issue a Notice of Decision of Refund Denial. This document communicates whether the refund is denied in full, approved in part, or subject to further review. It is a formal determination and becomes final unless further action is taken.

Petition for Reconsideration
If the taxpayer disagrees with the Department’s decision, they may file a Petition for Reconsideration within 30 days of the Notice of Decision. The petition must include new information, legal authority, or documentation not previously submitted during the protest stage.

Notice of Reconsideration of Refund Denial
The Department’s final administrative position is issued as a Notice of Reconsideration of Refund Denial. If the refund remains denied, the taxpayer’s only remaining remedy is to pursue refund litigation in circuit court.

Our firm assists clients at every stage of the refund denial process—from filing a protest with the required documentation to preparing and submitting Petitions for Reconsideration. If needed, we litigate refund claims in Florida’s circuit courts, including the Second Judicial Circuit in Leon County, where many tax disputes are filed.

Understanding and following each step of this process is critical to preserving your rights. We ensure that our clients meet all deadlines, present legally sound arguments, and provide the documentation necessary to maximize the chances of a successful refund recovery.

Refund Litigation in Florida Tax Disputes

When informal appeals fail, businesses have the right to litigate refund denials in court. Florida tax refund litigation is typically filed in circuit court and involves formal pleadings, evidentiary discovery, legal briefing, and trial presentation.

Our firm handles Florida tax refund litigation involving:

• Denials of sales tax refunds related to exempt or interstate transactions
• Disallowed corporate income tax refunds following amended returns or federal audit adjustments
• Failure of the Department to act on a refund application within a reasonable time
• Procedural denials based on documentation or timing issues

Litigation may also involve claims for penalties or interest owed by the Department when refunds are delayed or denied improperly. We pursue refund litigation strategically, seeking both recovery of tax and protection of long-term compliance positions.

Time Limits and Procedural Requirements for Florida Tax Refunds

Florida tax refunds are subject to strict time limits and procedural rules. Generally, refund claims must be filed within:

• Three years from the date the tax was paid
• 90 days after a final assessment becomes conclusive (if refund relates to an audit)
• Other timeframes depending on the type of tax and claim

Refund claims must be properly documented and submitted using the correct forms—typically Form DR-26, or an amended return for corporate tax. Missing a deadline or using the wrong form can result in forfeiture of the refund. Our firm helps clients meet every procedural requirement to protect their right to a timely and successful recovery.

Division of Administrative Hearings vs. Circuit Court in Florida Tax Refund Disputes

While many Florida tax disputes are resolved through administrative protest and reconsideration, refund denials that remain unresolved may ultimately be litigated. Florida tax refund denials may be litigated in the Division of Administrative Hearings or in Circuit Court. Subsequent appeals may occur in any Florida District Court of Appeal, but most appeals are in the First District Court of Appeal in Tallahassee. 

Our firm regularly advises clients on refund disputes and helps determine whether litigation is necessary, and if so, where it should be filed. We represent clients both in and outside of Florida in their Florida tax refund disputes in the Division of Administrative Hearings, Circuit Courts, and District Courts of Appeal.