Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 22 - Bad Debts (280-RICR-20-70-22)
Section 280-RICR-20-70-22.5 - Bad Debts
Universal Citation: 280 RI Code of Rules 20 70 22.5
Current through September 18, 2024
A. A retailer is relieved from liability for sales tax to the extent to which the liability is represented by accounts which have become worthless and have been charged off for income tax purposes. If the retailer has paid the tax, the retailer is then entitled to a deduction from gross receipts for the amount of the worthless account. If the retailer subsequently collects such account in whole or in part the amount so collected must be included in the first sales tax return filed after such receipt.
B. To support claim for such deduction the retailer must maintain adequate and complete records showing:
1. Date of original sale and
name and address of purchaser;
2.
Amount purchaser contracted to pay;
3. Amount on which retailer paid
tax;
4. All payments or other
credits applied to the worthless account; and
5. Evidence that the uncollectible portion of
the gross receipts on which tax was paid actually has been charged off as a bad
debt for income tax purposes and the date of such ascertainment.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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