Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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B

130.0000 BAD DEBTS—Regulation 1642

Annotation 130.0094

130.0094 Bad Debts—Recovery Through Litigation. The recovery through the process of litigation of amounts previously written off as bad debts has the same status as amounts recovered through any other process. The recovered amounts represent the sale elements in the transactions written off and are not damages recovered. Also, there is no offset for court costs or attorney's fees when the recovered amount is reported for sales and use tax purposes. These are merely collection expenses, deduction for which is prohibited by Regulation 1642(b)(2). 9/14/72.