A. Any stamping agent may deduct the amount of bad debts from the tax imposedby this chapter. The amount deducted shall be charged off as uncollectible onthe books of the stamping agent. If a person pays all or part of a bad debtthat a stamping agent claimed as a deduction under this section, the stampingagent shall be liable for the amount of taxes deducted in connection withthat portion of the debt for which payment is received and shall remit thesetaxes together with its next report to the Department pursuant to subsectionC of § 58.1-1003.
B. Any claim for a bad debt deduction under this section shall be supportedby all of the following:
1. A copy of the original invoice;
2. Evidence that the cigarettes described in the invoice were delivered tothe person who ordered them; and
3. Evidence that the person who ordered and received the cigarettes did notpay the stamping agent for the cigarettes and that the stamping agent usedreasonable collection practices in attempting to collect the debt.
C. As used in this section, "bad debt" means the taxes under this chapterattributable to any portion of a debt that is related to a sale of cigarettessubject to tax under this chapter that is not otherwise deductible orexcludable, that has become worthless or uncollectible in the time periodbetween the date when taxes accrue to the Department for the stamping agents'preceding tax return and the date when taxes accrue to the Department for thepresent return, and that is eligible to be claimed, or could be eligible tobe claimed if the stamping agent kept accounts on an accrual basis, as adeduction pursuant to § 166 of the Internal Revenue Code. A bad debt shallnot include (i) any interest on the wholesale price of cigarettes, (ii)uncollectible amounts on property that remains in the possession of thestamping agent until the full purchase price is paid, (iii) expenses incurredin attempting to collect any account receivable or any portion of the debtrecovered, (iv) any accounts receivable that have been sold to a third partyfor collection, and (v) repossessed property.
A. Any stamping agent may deduct the amount of bad debts from the tax imposedby this chapter. The amount deducted shall be charged off as uncollectible onthe books of the stamping agent. If a person pays all or part of a bad debtthat a stamping agent claimed as a deduction under this section, the stampingagent shall be liable for the amount of taxes deducted in connection withthat portion of the debt for which payment is received and shall remit thesetaxes together with its next report to the Department pursuant to subsectionC of § 58.1-1003.
B. Any claim for a bad debt deduction under this section shall be supportedby all of the following:
1. A copy of the original invoice;
2. Evidence that the cigarettes described in the invoice were delivered tothe person who ordered them; and
3. Evidence that the person who ordered and received the cigarettes did notpay the stamping agent for the cigarettes and that the stamping agent usedreasonable collection practices in attempting to collect the debt.
C. As used in this section, "bad debt" means the taxes under this chapterattributable to any portion of a debt that is related to a sale of cigarettessubject to tax under this chapter that is not otherwise deductible orexcludable, that has become worthless or uncollectible in the time periodbetween the date when taxes accrue to the Department for the stamping agents'preceding tax return and the date when taxes accrue to the Department for thepresent return, and that is eligible to be claimed, or could be eligible tobe claimed if the stamping agent kept accounts on an accrual basis, as adeduction pursuant to § 166 of the Internal Revenue Code. A bad debt shallnot include (i) any interest on the wholesale price of cigarettes, (ii)uncollectible amounts on property that remains in the possession of thestamping agent until the full purchase price is paid, (iii) expenses incurredin attempting to collect any account receivable or any portion of the debtrecovered, (iv) any accounts receivable that have been sold to a third partyfor collection, and (v) repossessed property.
A. Any stamping agent may deduct the amount of bad debts from the tax imposedby this chapter. The amount deducted shall be charged off as uncollectible onthe books of the stamping agent. If a person pays all or part of a bad debtthat a stamping agent claimed as a deduction under this section, the stampingagent shall be liable for the amount of taxes deducted in connection withthat portion of the debt for which payment is received and shall remit thesetaxes together with its next report to the Department pursuant to subsectionC of § 58.1-1003.
B. Any claim for a bad debt deduction under this section shall be supportedby all of the following:
1. A copy of the original invoice;
2. Evidence that the cigarettes described in the invoice were delivered tothe person who ordered them; and
3. Evidence that the person who ordered and received the cigarettes did notpay the stamping agent for the cigarettes and that the stamping agent usedreasonable collection practices in attempting to collect the debt.
C. As used in this section, "bad debt" means the taxes under this chapterattributable to any portion of a debt that is related to a sale of cigarettessubject to tax under this chapter that is not otherwise deductible orexcludable, that has become worthless or uncollectible in the time periodbetween the date when taxes accrue to the Department for the stamping agents'preceding tax return and the date when taxes accrue to the Department for thepresent return, and that is eligible to be claimed, or could be eligible tobe claimed if the stamping agent kept accounts on an accrual basis, as adeduction pursuant to § 166 of the Internal Revenue Code. A bad debt shallnot include (i) any interest on the wholesale price of cigarettes, (ii)uncollectible amounts on property that remains in the possession of thestamping agent until the full purchase price is paid, (iii) expenses incurredin attempting to collect any account receivable or any portion of the debtrecovered, (iv) any accounts receivable that have been sold to a third partyfor collection, and (v) repossessed property.
