Instructions For Completing The Florida Communications Services Tax Return (Form Dr-700016)

DR-700016N

R. 06/07

Page 22

Note on eligible bad debts: Direct-to-home satellite service

• Report adjustments in taxable sales due to bad debts.

providers may take credits on Schedule III for unpaid balances

You may take credits on Schedule IV for unpaid balances

or worthless accounts. The credit amount should be reported

or worthless accounts. The credit amount should be

as a reduction in taxable sales in Column A. The credit must

reported as a reduction in taxable sales in Column B. The

be taken within 12 months after the last day of the calendar

credit must be taken within 12 months after the last day of

year for which the bad debt was charged off on the federal

the calendar year for which the bad debt was charged off

return. Subsequent to processing a return, the Department

on the federal return. Subsequent to processing a return,

may require documentation to support bad debts adjustments.

the Department may require documentation to support

bad debts adjustments.

Column A - Change in reported taxable sales. Enter the net

change in taxable sales. This is the total of the taxable sales

• Take credit for tax paid to a vendor on services that have

which are either being added to or deleted from transactions

been resold.

previously reported. Report negative amounts in parentheses

Complete a separate Schedule IV for each applied period that

(amount).

you are adjusting. Make photocopies of Schedule IV as needed.

Column B - Rate. Enter the appropriate rate for the applied

Use Schedule V to claim multistate tax credits.

period that you are adjusting.

Column A - Local jurisdiction. Enter the names of the

Column C - Collection allowance adjustment. Collection

jurisdiction(s) for which you have adjustments. Attach

allowance adjustments are required for all transactions that

additional sheets as needed.

result in a decrease in taxable sales. If Column A (Change

State Tax Calculation

in reported taxable sales) is a decrease (negative number),

multiply .0075 by the amount of tax collected and/or accrued

Column B - Change in reported taxable sales. Enter the net

on the amount in Column A. The result should be entered as

change in taxable sales on the line corresponding to the

a positive number in Column C. If a collection allowance was

appropriate local jurisdiction(s). The net change in taxable

not taken on the original return or the adjustment results in an

sales may include a reduction for eligible bad debts. Report

increase in taxable sales, this section does not apply. Enter

negative amounts in parentheses (amount).

0 (zero) in Column C.

Column C - Rate. Enter the appropriate rate for the applied

Column D - Adjustment amount. Subtract Column C from the

period that you are adjusting.

amount of tax collected and/or accrued for sales transactions

Column D - Collection allowance adjustment. Collection

reported in Column A. Enter the result here. Report negative

allowance adjustments for state tax are required for

amounts in parentheses (amount).

transactions that result in a decrease in taxable sales for a

Penalty and Interest Calculation

prior applied period. If the original filing was not eligible for

a collection allowance, or if this schedule is being used to

Penalty and interest are due on all adjustments which result in an

report an increase in taxable sales for a prior applied period

increase in tax due.

or a change in jurisdiction only (no change in taxable sales),

Column E - Penalty. See “Penalty for late payments” on

this section does not apply. Enter 0 (zero) in Column D.

Page 19 for information on calculating the penalty due.

If Column B (change in reported taxable sales) is a decrease

(negative number), the collection allowance must be recouped

Column F - Interest. See “Interest on late payments” on

by one of the following methods. The result should be entered

Page 19 for information on calculating the interest due.

as a positive number in Column D.

Column G - Total adjustments. Sum the totals of Columns D,

• If you are using the DOR database, a database certified

E, and F. Enter the result here and on Page 1, Line 10 of the

by DOR, or a ZIP+4 database in compliance with

return.

s. 202.22, F.S., multiply .0075 by the tax collected and/or

accrued for sales being decreased in Column B.

Schedule IV

• If you are not using the DOR database, a database

Adjustments

certified by DOR, or a ZIP+4 database in compliance with

s. 202.22, F.S., multiply .0025 by the tax collected and/or

Who must complete this schedule?

accrued for sales being decreased in Column B.

Communications services providers (except direct-to-home

Column E - Adjustment amount. Subtract Column D from

satellite service providers) must use this schedule to:

the tax collected and/or accrued for the sales reported in

Column B, and enter the result here.

• Report adjustments to previous filing periods. This

schedule must be used to correct state or local tax

Local Tax Calculation

situsing errors (revenue reported in the wrong jurisdiction)

and to adjust amounts reported incorrectly on previous

Column F - Change in reported taxable sales. Enter the net

returns.

change in taxable sales for the appropriate jurisdiction(s). The

net change in taxable sales may include a reduction for eligible

bad debts. Report negative amounts in parentheses (amount).

Instructions For Completing The Florida Communications Services Tax Return (Form Dr-700016) - 2007 Page 5

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