45 Ind. Admin. Code 2.2-6-12

Current through November 6, 2024

Section 45 IAC 2.2-6-12 - Bad debts deduction

Authority: IC 6-8.1-3-3

Affected: IC 6-2.5

Sec. 12.

(a) In determining the taxpayer's sales and use tax liability under Regulation 6-2.5-6-7 [ 45 IAC 2.2-6-8 ], a retail merchant shall deduct from his gross retail income from retail transactions made during a particular reporting period, the retail merchant's bad debts or uncollectible receivables.

(b) In order to qualify for this exemption the retail merchant must have:

(1) Previously reported the transaction and remitted the sales or use tax to the Department;

(2) Not collected the tax from the customer; and

(3) Written the receivable off for federal income tax purposes.

45 IAC 2.2-6-12

Department of State Revenue; Ch. 6, Reg. 6-2.5-6-9 a (010); filed Dec 1, 1982, 10:35 am: 6 IR 63