Illinois DOR Proposes Rule Addressing Bad Debt Deductions on Installment Contracts for Cash Basis Retailers

The Illinois Department of Revenue is proposing changes to an Illinois retailers’ occupation tax rule to clarify that a cash basis retailer that cannot claim a bad debt deduction on its federal income tax return is entitled to claim a refund for Illinois sales tax paid by the retailer on that portion of an installment contract found to be worthless or uncollectable.

Source Deloitte

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