Instructions For Form Boe-401-Gs - Fuel Retailers Return (Page 9 of 9) in pdf

BOE-401-GSIN REV. 5 (4-13)

STATE OF CALIFORNIA

BOARD OF EQUALIZATION

Special Instructions for Tax Recovery Deductions in Section B

Tax Recovery Deductions for Sales Originally Reported Prior to April 1, 2009 (Section B)

Due to the 1/4% increase in the state tax rate, you must report your tax recovery transaction(s) where the original

transactions occurred before July 1, 2011 and December 31, 2012, separately from those where your original

transaction(s) occurred on or after January 1, 2013. Transactions that occurred prior to January 1, 2013, should

be entered in Column A, and transactions on or after January 1, 2013, should be entered in Column B. Add the

amounts in Column A and Column B and enter the result in Column C. Be sure to enter your transaction(s) in the

appropriate columns for the period in which the transaction(s) occurred. This will ensure your credit is taken at the

appropriate rate.

Tax Recovery Deductions for Sales Originally Reported as Eligible for a Partial State Tax Exemption

(Sections B and C)

In addition to adjusting for sales reported prior to July 1, 2011, if any tax recovery transactions are related to sales

that were eligible for a partial state tax exemption, an additional adjustment may be required as explained below in

the instructions for Section C.

Tax Recovery Deductions for Partially Exempt Sales prior to July 1, 2011

If you have tax recovery transactions (such as bad debts) to report, where the original sales were partially exempt

and occurred prior to July 1, 2011, you cannot use Section B or Section C on the back of your return to report

those tax recoveries. To report bad debts where the original transactions occurred prior to July 1, 2012, call our

Taxpayer Information Section for assistance in preparing your return.

Special Instructions for Partial Exemptions in Section C

Tax Recoveries on Sales Claimed as Eligible for a Partial State Tax Exemption in Section C

In order to recover only the partial state tax rate originally paid, you must make an adjustment in the appropri

ate column of Section C, if any tax recovery deductions were claimed in Section B where the original transaction

was eligible for one of the partial state tax exemptions listed in Section C. If no adjustment is made, tax will be

recovered at the full state tax rate and your return will be underpaid. To make an adjustment for tax recoveries

on partially exempt sales where the original transaction occurred between July 1, 2011 and December 31, 2012,

enter a contra deduction (negative entry) in Column A for the appropriate exemption. Any previously unreported

sales that occurred prior to January 1, 2013 should be reported on a corrected return covering the period in which

the sale occurred. Column A of Section C should only be used to report adjustments to tax recoveries on sales

originally claimed as eligible for partial state tax exemption. For tax recoveries where your original partially exempt

transaction(s) occurred on or after January 1, 2013, make your adjustment in Column B. If you do not have any

current period partial exemptions, you will need to make a contra deduction for the amount of tax recoveries related

to sales originally reported as partially exempt. If you have current partial exemptions to report, subtract those tax

recoveries from your current partial exemptions and enter the net amount.

Claiming a tax recovery deduction in Section B provides a full state tax exemption while making any necessary

adjustments in Section C. This will reverse the original partial exemption, reducing your recovery to the partial state

rate originally paid and ensure your credit is taken at the appropriate rate.

Instructions For Form Boe-401-Gs - Fuel Retailers Return Page 9