Nev. Admin. Code § 372.535

Current through September 16, 2024

Section 372.535 - Maintenance and availability of records relating to bad debt

1. Pursuant to NRS 372.735 and 374.740, a retailer who claims a deduction for a bad debt deduction shall maintain a record of the following information relating to the bad debt:

(a) The name of the debtor.

(b) The date on which the bad debt was incurred.

(c) The taxable sales price of the sale of tangible personal property giving rise to the bad debt.

(d) The amount of sales tax remitted to the Department on the sale of tangible personal property giving rise to the bad debt.

(e) The portion of the bad debt representing:

(1) Interest;

(2) Any finance charge;

(3) Any service charge; and

(4) Any other amount charged as part of the sale which was not subject to sales tax.

(f) If the retailer is required to file a federal income tax return:

(1) The date on which the retailer wrote off the bad debt in the business records of the retailer that are maintained in the ordinary course of the retailer's business and became eligible to claim a deduction for the bad debt pursuant to section 166 of the Internal Revenue Code, 26 U.S.C. § 166;

(2) The amount of the deduction claimed for the bad debt pursuant to section 166 of the Internal Revenue Code; and

(3) Any other evidence that the retailer claimed a deduction pursuant to section 166 of the Internal Revenue Code for the uncollectable portion of the bad debt on which sales tax was originally paid.

(g) If the retailer is not required to file a federal income tax return:

(1) The date on which the debt was written off the records and books of account of the retailer in accordance with generally accepted accounting principles;

(2) The amount of the debt written off the records and books of account of the retailer on which sales tax was originally paid; and

(3) Any other evidence that the uncollectable portion of the debt was written off the records and books of account of the retailer in accordance with generally accepted accounting principles.

(h) The amount of the bad debt deduction claimed by the retailer for each bad debt.

2. Upon request by the Department, a retailer shall provide to the Department a record maintained by the retailer pursuant to subsection 1.

Nev. Admin. Code § 372.535

Added to NAC by Tax Comm'n by R191-18, eff. 12/19/2018

NRS 360.090, 372.368, 372.725, 372.735, 374.373, 374.725, 374.740