45 IAC 2.2-6-12 Bad debts deduction

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.