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Can Small Businesses Claim Tariff Refunds?
For many U.S. businesses, tariffs became a significant additional cost of importing inventory, equipment, materials and components. Following a major Supreme Court decision in 2026, some businesses may now be entitled to recover certain tariffs they previously paid.
The opportunity can apply to small businesses as well as large corporations. However, not every tariff qualifies, and receiving a refund may require businesses to identify eligible customs entries and follow the appropriate U.S. Customs and Border Protection process.
Why Are Businesses Receiving Tariff Refunds?
On February 20, 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs.
That ruling affected tariffs that had been imposed under IEEPA and created the basis for importers that paid those duties to seek refunds.
Importantly, the decision did not eliminate every U.S. tariff. Tariffs imposed under other legal authorities, including certain Section 232 and Section 301 tariffs, are separate from the IEEPA tariffs affected by the ruling.
Can a Small Business Qualify for a Tariff Refund?
Yes.
The size of your company isn't what determines whether you may have an eligible refund. What matters is whether your business was responsible for paying tariffs that are covered by the refund process.
The U.S. Chamber of Commerce says the decision could affect more than 200,000 small-business importers across the country.
A potentially eligible business might include a:
Retailer importing products for resale
Manufacturer importing parts or raw materials
Restaurant or hospitality company importing equipment
Construction company importing materials
E-commerce company importing inventory
Distributor or wholesaler
Other small business acting as an importer of record
A Florida small business can therefore qualify even if international trade represents only one part of its operations.
What If You Purchased Imported Products From a U.S. Supplier?
This distinction is important.
If your business purchased products from a domestic supplier that had already imported the goods, the supplier may have been the importer of record and the party that actually paid the tariff to the federal government.
Your business may have indirectly absorbed some of that tariff through higher prices, but that does not necessarily make your business the party entitled to the customs refund.
Businesses should review their import documentation to determine who actually entered the merchandise and paid the affected duties.
Which Tariffs May Be Eligible for Refunds?
The 2026 Supreme Court ruling concerned tariffs imposed under IEEPA.
Other tariffs can remain in place because they were imposed under different laws. For example, the U.S. Chamber notes that Section 301 tariffs and Section 232 tariffs on certain products were not invalidated by the IEEPA decision.
That means businesses shouldn't simply total every customs duty they paid and expect the entire amount to be refunded.
Each affected customs entry should be reviewed individually.
How Can Businesses Request Their Refunds?
CBP began implementing a dedicated process for handling the affected tariff refunds in 2026.
According to the U.S. Chamber, CBP launched the first phase of its process on April 20, 2026, using its Automated Commercial Environment (ACE). The related functionality is called the Consolidated Administration and Processing of Entries (CAPE) system.
Businesses may need to work with their customs broker or trade counsel to identify eligible entries and follow the applicable CBP procedures.
Businesses that use ACE can also provide U.S. banking information for electronic CBP refunds through the system.
Don't Assume the Refund Is Automatic
Businesses shouldn't assume that money will simply appear in their bank accounts.
The correct process can depend on factors such as the customs entry, the type of tariff paid and the status of that entry.
The U.S. Chamber recommends that importers review their records and work with their customs brokers or trade counsel as necessary to determine the appropriate steps.
This is particularly important for businesses that imported a large volume of goods and potentially have many affected entries.
What Records Should Your Business Review?
Start by gathering records related to imports during the affected period.
Useful documentation may include customs entry summaries, CBP records, invoices from customs brokers, tariff and duty statements, supplier invoices, proof of payments, inventory records and accounting records showing how import costs were recorded.
These documents can help determine both whether a refund may be available and how receiving that refund affects your books and taxes.
How Could a Tariff Refund Affect Your Business Taxes?
Receiving a tariff refund can create an accounting issue as well as a customs issue.
For example, your company may previously have treated tariffs as part of the cost of imported inventory. Those costs may eventually have flowed through cost of goods sold when the products were sold.
If some of those costs are later refunded, your accounting records may need to be adjusted.
The appropriate treatment can depend on when the tariffs were paid, when the related goods were sold, how the original payment was recorded, the business's accounting method and when the refund is received.
That's one reason a business should coordinate the refund with its accountant rather than simply recording the payment as miscellaneous cash.
What If Your Refund Includes Interest?
A business could also receive interest in connection with a tariff refund.
The underlying refund and any interest shouldn't automatically be assumed to have identical accounting or tax treatment. Businesses should retain documentation showing how the total payment was calculated.
Could a Tariff Refund Affect a Prior Tax Return?
Potentially.
Suppose a business paid substantial tariffs in an earlier year and those costs affected inventory or cost of goods sold. If the business receives some of that money back in 2026, its CPA may need to determine how the recovery should be reflected for tax and financial-reporting purposes.
Whether a prior return needs attention or the adjustment is accounted for in another manner depends on the specific facts and applicable tax rules.
What Should Florida Small Businesses Do Now?
Businesses in Fort Lauderdale, Wilton Manors, Broward County and throughout Florida that directly imported products should review whether they paid IEEPA tariffs.
If your business did, there are two separate questions to address:
First, determine whether your customs entries qualify for a refund. A customs broker or trade attorney can help with the CBP process.
Second, determine how any refund should be recorded and reported for tax purposes. That's where your CPA becomes important.
With potentially significant amounts involved, it's better to review the records before the refund arrives than to determine the accounting treatment afterward.
Need Help With the Tax Impact of a Tariff Refund?
If your business paid import tariffs or expects to receive a tariff refund, James Ridout CPA can help review how the payment affects your bookkeeping, inventory, cost of goods sold and business tax reporting.
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