How does TaxCloud manage items that get returned?

The treatment of returned items depends on the return date vis-à-vis the purchase date.

If an item is purchased, and then returned, within the same month, the transaction offsets itself. If an item is purchased and then returned in a future month, however the value of the items sold (along with any shipping charges), is applied to the month in which the original sale occurred – while the returned sales tax is applied in the current month, thereby creating a tax credit in the same jurisdictions in which the tax had been paid.