Form Ad-1 - Abandoned Deposit Amounts Return Form (Page 3 of 3) in pdf

Form AD-1 Instructions

Form AD-1 must be filed by all bottlers and distributors no later than ten

Line 17. Enter the total amount of abandoned deposit amounts paid in the

days after the last day of each month. Any bottler or distributor who fails to

prior 24 months.

file and pay on time will be subject to interest and penalties under Mass-

Line 18. Enter the total amount of reimbursements received in the preced-

achusetts General laws, Chapter 62C. All calculations must use the cash

ing 24 months.

basis accounting method.

Line 20. You are due a reimbursement only if the abandoned deposit

Part 1. Reimbursement Calculation

amounts paid in the preceding 24 months and the ending balance on line

Line 1. Enter the total number of nonreusable beverage containers regard-

10 is a negative. Enter the smaller of line 16 or line 19.

less of when sold for which you have received refund value this month. Con-

Part 2. Reconciled Deposit Transaction

tainers which will be shipped out of Massachusetts for retail sale should not

Fund Cash Balance and Credits

be included on this line.

This section calculates the actual cash balance of the fund at the end of the

Line 2. Enter the total number of nonreusable beverage containers regard-

month. You must attach the most recent bank statement for the deposit

less of when returned for which you have paid refund value this month.

transaction fund. If the ending cash balance is negative, you may credit any

Deposit Transfer Fund Balance Amount

outstanding monies owed to the fund due to borrowing or partial funding

Calculation

by completing lines 13 and 14 in this section and line 4 in Part 3 or line 6

This section calculates the ending deposit transaction fund balance amount

in Part 4.

for the month that equals the amount that should be in the fund. This bal-

Line 1. Enter the beginning cash balance. This equals the previous month’s

ance does not necessarily represent the actual cash balance of the account.

ending cash balance from last month’s return, Part 2, line 12. Do not enter

The ending balance is used to calculate abandoned deposit amounts and

less than zero.

reimbursements. It is based on a fully funded deposit transaction fund. Any

borrowing or partial funding is ignored in the calculation of the ending bal-

Line 4. If the fund is only partially funded, enter the payment made to the

ance amount. The balance should not include any interest earned or with-

fund this month for gradual funding.

drawn from the fund. Bottlers and distributors may withdraw for their own

Line 5. If you were authorized to borrow on the fund, enter the loan pay-

use interest income earned on the fund.

ment made into the fund.

Line 3. Enter the ending balance from the prior month’s return. This amount

Line 7. Enter interest income withdrawn this month. Include in the amount

is from Part 1, line 10, of the prior month’s return.

interest income used to pay refund values during the month due to insuffi-

Line 4. Enter any reimbursement amounts from the prior month’s Form

cient funds.

AD-1, Part 1, line 20. This amount must be entered even if it has not been

Line 9. If authorized to borrow on the fund, enter the loan amount with-

received.

drawn this month.

Line 5. Enter the total dollar amount of refund values received during the

Line 12. Enter the ending cash balance if it is positive. This amount is the

month.

beginning cash balance for the next return. If it is a negative and you have

Line 7. Enter any abandoned deposit amounts paid from the prior month’s

either borrowed or partially funded the account, complete lines 13 and 14

Form AD-1, Part 1, line 12.

in order to credit any amount owed to the fund by the negative amount.

Line 8. Enter the total dollar amount of refund values paid during the month.

Part 3. Unfunded Liability Balance

Line 4. If your cash balance was negative in Part 2, line 12, you may be

Line 10. The ending deposit transaction fund balance amount does not re-

entitled to a credit against the amount owed to the fund. You must complete

flect any borrowing, partial funding, or interest earned on the fund. This bal-

lines 13 and 14 in Part 2 before applying any credit.

ance does not necessarily reflect the actual cash balance of the fund. If this

amount is negative you may be due a reimbursement and must complete

Part 4. Authorized Loan Balance

lines 16 through 20.

If you have borrowed from the fund you must complete this section every

Abandoned Deposit Amounts Calculation

month until the total amount borrowed has been repaid. If the amount en-

Line 11. Enter the total dollar amount of refund values received this month

tered in Part 2, line 12 is a negative, you may be entitled to a credit against

and the two previous months.

the amount owed to the fund. Complete lines 13 and 14 in Part 2 before

applying any credit.

Line 12. Subtract line 11 from line 10 and enter the result. If the amount is

positive, complete lines 13 through 15 to calculate the total payment to be

Part 5. Interest in Fund

remitted.

This section calculates the interest remaining in the fund at the end of each

Line 13. Failure to file or pay on time may result in penalties under Mass-

month. This section must be completed each month.

achusetts General Laws, Chapter 94C.

Line 1. This amount is equal to the amount entered in the prior month’s re-

Line 14. If the return is late or there is an unpaid balance from prior re-

turn, Part 5, line 5.

turns, the unpaid balance is subject to interest charges.

Line 4. Enter interest income withdrawn this month. Include in this amount

Line 15. Add lines 12, 13 and 14. Make your check or money order pay-

any interest income used to pay refund values during the month due to in-

able to the Commonwealth of Massachusetts and mail it to Massachusetts

sufficient funds.

Department of Revenue, PO Box 7008, Boston, Ma, 02204-7008.

Reimbursements

Line 16. If line 10 is negative, you may be due a reimbursement. Enter the

negative amount from line 10 as a positive in line 16.

Form Ad-1 - Abandoned Deposit Amounts Return Form Page 3

Related Articles

Related forms

Related Categories