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AU-474-I

(3/95)

Instructions for Form AU-474

Application for Refund of the Petroleum

Business Tax Because of a Bad Debt

General Information

Instructions

Complete the identification number, telephone number, business

Who May Use This Form

name and address boxes in full.

A petroleum business or aviation business registered as such with

Line 1 Check each type of registration that applies to your

the Tax Department at the time of sale must file Form AU-474 to

business.

claim a bad debt refund. Bad debts cannot be applied as either a

Line 2 Enter the type of federal return and the period covered by

credit or an off-set on the petroleum business tax return.

the return on which you deducted the bad debt.

Line 3 For each sale that became a bad debt, complete columns

A through G as follows:

When to File

Column A — Enter the date of the sale of the petroleum

You must file this form within two years from the time that the debt

to the account that has been determined uncollectible.

was written off and deducted as a worthless debt for federal

Column B — Enter the account name; if the name has

income tax purposes. You are not required to pursue legal action to

changed since the date of sale, also enter the new name.

demonstrate that a debt is uncollectible.

Column C — Enter the tax period (quarterly or monthly) in

which you paid the petroleum business tax on your return.

For diesel product and residual petroleum product, this is

What Sales Qualify for the Bad Debt Refund

the tax period in which the fuel was sold. For gasoline and

other motor fuel it is the tax period in which the fuel was

Sales made on or after September 1, 1994, by a petroleum

imported into or produced in New York State.

business or an aviation fuel business, of fuel in-bulk to a purchaser

Column D — Enter the type of product sold: gasoline,

for the purchaser’s own use and consumption, or of motor fuel or

gasohol, diesel fuel, kerosene, kero-jet fuel, residual

enhanced diesel motor fuel in-bulk to a filling station, may qualify

petroleum product, propane, etc.

for the bad debt refund. However, neither a retail sale at a filling

Column E — Enter the amount that remains due on the

station nor any other sale where the fuel is delivered directly into

sale. The selling price can include charges directly

the fuel tank of a motor vehicle, airplane or other conveyance

associated with the sale (taxes, shipping, handling, etc.)

qualifies for the refund. To claim a refund of tax paid on a debt

but not finance charges for late payment following the

written off, the petroleum business or aviation fuel business must

sale. If payment was made on the account, complete the

have paid the imposed tax to the Tax Department on its return.

Worksheet for Partial Payments.

Column F — Enter the amount of petroleum business tax

per gallon that you paid on the uncollectible sale. If not

Refund Amount

listed on the invoice, consult Publication 908, Article 13-A

Tax Rates, to determine the rate per gallon.

The amount of the refund will equal the amount of petroleum

Column G — Enter the amount of petroleum business tax

business tax imposed and remitted on an account that is

included on the invoice. If not listed, multiply the gallons

determined uncollectible. If partial payments have been made, the

sold by the rate (column F) and enter that amount. If

refund is computed reflecting the apportionment of the payments

partial payment has been made, enter the amount from

between the petroleum business tax and other components of the

line (f) of the Worksheet for Partial Payments for this

total selling price. Payments should be applied to the earliest

account.

charges in the account.

Total — Add all amounts in column G including the totals

from additional sheets that may have been necessary.

Note: You should report any refund of the petroleum business tax

This amount is the calculated refund.

received because of bad debt as income on your state

franchise or income tax return (also any federal return) for

Worksheet for Partial Payments

the year in which you received the refund.

Instructions

Line (a) — Enter selling price including charges directly associated

Subsequent Payments on the Bad Debt Account

with the sale (taxes, shipping, handling, etc.) but not including

If you subsequently receive a payment on an account for which a

finance charges.

refund of the petroleum business tax was granted as a bad debt,

Line (b) — Petroleum business tax included in the selling price as

you must list such subsequent collection of any petroleum business

listed on the invoice. If not separately listed, consult

tax in the Schedule of Bad Debts of Form AU-474 as a negative

Publication 908, Article 13-A Tax Rates, to determine the rate per

amount. You should also report the subsequent collection as an

gallon. Multiply the rate times the number of gallons and enter the

offset to income on your state franchise or income tax return (also

amount.

on any federal return) for the year in which you received the

Line (c) — Divide the amount in line (b) by the amount in line (a).

payment.

Express this amount as a decimal. Carry to the nearest four

decimal places (e.g., .0001).

Line (d) — List total of payments applied to the sale.

Federal Disallowance of a Bad Debt

Line (e) — Multiply the amount on line (c) by the amount on line (d).

Any disallowance, for federal tax purposes, of a bad debt for which

Line (f) — Subtract line (e), amount of partial payment applied to

a refund of the petroleum business tax was paid, will be treated as

petroleum business tax from line (b), petroleum business tax

a report of federal change, correction or disallowance to the New

included in selling price. This is the refundable amount of the

York State Tax Department within 90 days after the final

petroleum business tax. Transfer this amount to column G of the

determination. A petroleum business or aviation fuel business that

Petroleum Business Tax Schedule of Bad Debts for this account. If

more than three accounts have partial payments, use additional

is a corporation filing a combined report under Article 9-A must

report such change within 120 days.

sheets.

Instructions For Form Au-474 - Application For Refund Of The Petroleum Business Tax Because Of A Bad Debt - New York State Department Of Taxation And Finance

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