501(c)(3) client has been paying sales tax on their electric bill for 3+ years despite having a valid exemption certificate on file. Utility is saying they'll issue a refund for the last 12 months only because of their "internal policy." State statute of limitations is 4 years. How do you force the full refund?
Client exempt from sales tax but utility billed it anyway — 3 years back
Utility's "internal policy" doesn't override state law. File a formal complaint with your state PUC — cite the statute, attach the exemption certificate with the original filing date, and demand full refund to that date. I've done this 4 times. 3 out of 4 the utility caved before the PUC ruled.
What Nicole said. Also copy the state Department of Revenue on the complaint — sales tax collected in error is technically owed back to the state, which means the utility has dual exposure. They usually process quickly once DOR is involved.