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Washington: Retailer Can’t Claim “Bad Debt” Refunds on Defaulted Private Label Credit Card Payments

The Washington Board of Tax Appeals held that a retailer that contracted with a bank to provide a private label credit card program for its customers did not qualify for Washington’s bad debt sales tax refunds on underlying defaulted credit card payments, because unlike a referenced 2020 Washington Supreme Court case, the facts here failed to show the retailer was a guarantor of the uncollectable debts.

Source Deloitte

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