Authority: IC 6-8.1-3-3; IC 7.1-4-2-8; IC 7.1-4-6-3.6

Affected: IC 6-8.1-9-1; IC 7.1-4-2-8; IC 7.1-4-3-5; IC 7.1-4-4-6; IC 7.1-4-4.5

Sec. 5.5. (a) A person may claim a deduction on the monthly return required to be filed under 45 IAC 7-5-1 for alcoholic beverages under the following circumstances:

1. (1) the person sold or withdrew for sale an alcoholic beverage to an exempt entity under 45 IAC 7-6-1;
2. (2) an alcoholic beverage was damaged or destroyed while in the person's possession; or
3. (3) an alcoholic beverage was returned by the person to the primary source of supply;

so long as the person submitted proof as required under section 6 of this rule.

(b) If this deduction exceeds the liabilities owed to the state on that monthly return, the department shall refund the tax to the person.

(c) If the person does not claim the deduction on the monthly return, the refund procedures under IC 6-8.1-9-1 will apply.

(d) The tax paid on alcoholic beverages subsequently lost or stolen cannot be deducted, refunded, or credited.

(Department of State Revenue; 45 IAC 7-3-5.5; filed Sep 7, 2016, 4:11 p.m.: 20160928-IR- 045160002FRA)