Colorado Appellate Court Denies Bad Debt Deductions on Sales Made via Private Label Credit Cards

In a case involving a third-party lender that issued private-label store brand credit cards for customers of various retailers, the Colorado Court of Appeals affirmed that the lender is not a taxpayer entitled to bad debt deduction relief on uncollectable debts under Colorado sales and use tax law, because the finance company and the retailers do not constitute a single person.

Source Deloitte

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