Okla. Admin. Code § 710:23-1-6

Current through Vol. 42, No. 6, December 2, 2024

Section 710:23-1-6 - Credit allowed distributor

(a)Prior authorization required for credit for damaged or returned items. Credit for damaged bingo faces, U-Pik-Em bingo game sets, breakopen game tickets and charity game equipment may not be taken by the distributor on the face of the Charity Gaming Tax Report until a valid credit authorization has been received from the Tax Commission. [See:710:23-1-15 ] The burden of establishing the right to, and the validity of a credit or refund is on the distributor.

(b)Credit for damaged, miscut, unusable items. Credit may be allowed against subsequent charity game tax liability of the distributor for bingo faces, U-Pik-Em bingo game sets, breakopen game tickets and charitable game equipment determined upon review by the Tax Commission to be:

(1) Misprinted.

(2) Miscut.

(3) Damaged by a disaster such as flood or fire.

(4) Otherwise unplayable or unusable.

(c)Credit for undamaged, returned items. Credit may also be authorized for returns of saleable, complete sets, but only after the Commission has verified that the items have been returned to inventory and the tax has been credited or refunded to the entity returning the equipment.

(d)Required information. Credit/refund requests based upon (b) or (c) of this Section must be documented with the following information (if applicable):

(1) A written detailed explanation of why the credit/refund is due, including the "ABLE" license or exemption number and a description of the damaged items for which credit/refund is claimed.

(2) Copy of Tax Commission authorization for destruction of damaged items.

(3) Copies of Charity Gaming Tax Reports on which the tax was originally reported.

(4) Copies of cancelled check used to remit the tax paid.

(5) Copies of the original purchase invoices for the items.

(6) Copies of the original invoices on which the tax was originally charged.

(7) Copies of the credit invoices or checks showing the price paid for and the tax collected on damaged bingo faces, U-Pik-Em bingo game sets, breakopen game tickets or charity game tickets has been refunded to the organization or entity.

(e)Credit for uncollectible taxes. Credit for taxes uncollectible from a defaulting organization may be claimed and must be shown on Schedule C of the Charity Games Report. A credit may also be claimed for taxes paid by the distributor pursuant to this Subsection when a check tendered by a defaulting organization in payment of charity games taxes has been returned unpaid. However, the burden of establishing the right to any credit, and the validity of each claim, is on the distributor. Once the right to a credit is established, a letter authorizing the credit to be taken on the face of the tax report will be issued. Upon receipt of the letter, the distributor may deduct the amount authorized from the tax shown on the face of the report.

(f)Required information. Credit is limited to amounts supported by adequate documentation which are being or will be charged off the distributor's accounting records and all amounts claimed must be adjusted to reflect any remuneration taken on reports filed previously. A claim for credit based upon uncollectible taxes due and unpaid by a defaulting organization must be documented with the following information, if applicable:

(1) A detailed, written explanation of why the credit is due.

(2) "ABLE" license number of the defaulting organization;

(3) Name, address, and business name of the defaulting organization;

(4) The amount of tax liability unpaid, along with the type of charity games tax to be credited;

(5) Copy of the original invoice; and

(6) Copy of the returned check or checks.

(g)Limitations. A credit authorization allowed pursuant to this Section will be issued only to the entity who remitted and reported the tax to the Commission. Subsequent recoveries of Charity Games Tax amounts previously claimed as "uncollectible", on which a credit has been taken, or for which a refund has been issued, are to be reported to the Tax Commission in the month of recovery.

(h)Procedure for applying credits. A copy of the credit authorization letter must be attached to the monthly report on which the credit is taken or the distributor will not be allowed to deduct the amount claimed. Distributors must apply for the credit authorization letter by the date the second report is due, following the date of the original sale.

Okla. Admin. Code § 710:23-1-6

Added at 10 Ok Reg 4489, eff 8-10-93 (emergency); Added at 11 Ok Reg 3489, eff 6-26-94; Amended at 11 Ok Reg 4685, eff 8-15-94 (emergency); Amended at 12 Ok Reg 2621, eff 6-26-95; Amended at 15 Ok Reg 2410, eff 6-11-98; Amended at 16 Ok Reg 2643, eff 6-25-99