Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 2.2 - SALES AND USE TAX
Rule 6 - Returns, Remittances and Refunds
Section 6-12 - Bad debts deduction
Universal Citation: 45 IN Admin Code 6-12
Current through September 18, 2024
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.
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