Found a tax issue with a automotive parts manufacturer in Illinois. They have a valid manufacturing exemption certificate but ComEd hasn't been applying the state sales tax exemption to their electricity bills. Going back 2.5 years, looks like about $18,200 in taxes that shouldn't have been charged. How do you typically handle utility tax exemption corrections?
Manufacturing tax exemption not applied to utility bills
Rachel, ComEd usually handles this pretty smoothly once you provide the exemption certificate and documentation. They'll issue credits for the overcharged taxes going back to when the exemption should have started. Make sure you have copies of all the manufacturing equipment invoices to support the exemption.
Omar, they do have all the equipment documentation. The exemption certificate was filed with the state but somehow never made it into ComEd's billing system. Should be a straightforward correction then.
Exactly. ComEd will want to verify the certificate is current and valid, then they'll process the refund. Usually takes 6-8 weeks for the credit to appear on the bills.