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. (1) Previously reported the transaction and remitted the sales or use tax to the Department;
2. (2) Not collected the tax from the customer; and
3. (3) Written the receivable off for federal income tax purposes.

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