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BTLG Table of Contents > Sales and Use Tax Annotations > B > 130.0000 Bad Debts > Annotation 130.0093

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B

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130.0000 Bad Debts—Regulation 1642

Annotation 130.0093

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130.0093 Bad Debts. The bad debt deduction is not limited to the retailer who reported (and paid) the tax on a sale resulting in the bad debt. The bad debt deduction extends to a successor who becomes liable for the tax on the original sale (and who suffered the bad debt) even if this person did not pay the tax resulting from that sale. Thus, a "successor" who is liable for any tax of the preceding retailer may take a bad debt deduction. In this way, the predecessor may make the sale and pay the tax while the sections 6811 and 6812 successor who suffers the bad debt is entitled to the deduction. 1/25/78.