Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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130.0000 BAD DEBTS—Regulation 1642

Annotation 130.0250

130.0250 Statute of Limitations. The statute of limitations on bad debts starts from the time in which the book entry is made, not the time in which the account was found to be worthless. Thus, a taxpayer may legally claim a bad debt deduction on a return filed within the three year statute of limitation period from the date of the book entry, i.e., if a book entry is made in the fourth quarter of 1973, the taxpayer would have until the fourth quarter of 1976 to file a claim for refund. 5/17/77; 8/1/77.