Schedule Cig-Bdc - Cigarette Tax Bad Debt Credit Form

Download a blank fillable Schedule Cig-Bdc - Cigarette Tax Bad Debt Credit Form in PDF format just by clicking the "DOWNLOAD PDF" button.

Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.

Complete Schedule Cig-Bdc - Cigarette Tax Bad Debt Credit Form with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.

Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.

Indiana Department of Revenue

Schedule CIG-BDC

P.O. Box 901

State Form

Indianapolis, IN 46206-0901

(R / 12-07)

Cigarette Tax Bad Debt Credit Form

Name of Licensee

Cig License Number

FID#

Date of Order

To be eligible for a bad debt credit, a debt must meet the definition of "bad debt" provided for under IRC 166

"Bad Debt" means the taxes attributable to any portion of a debt that is related to a sale of tobacco products subject to tax under Article 6-7-1-12 that is not

otherwise deductible or excludable, that has become worthless or uncollectible in the time period between the date when taxes accrue to the state for the

present return, and that is eligible to be claimed, or could be eligible to be claimed if the licensee kept accounts on an accrual basis, as a deduction pursuant to

section 166 of the Internal Revenue Code. A bad debt shall not include any interest on the wholesale price of a tobacco product, uncollectible amounts on

property that remains in the possession of the licensee until the full purchase price is paid, expenses incurred in attempting to collect any account receivable

or any portion of the debt recovered, any accounts receivable that have been sold to a third party for collection, and repossessed property.

Number of Cigarettes:

Invoice

Name and Address of the Company the Cigarettes were Shipped,

Times Tax Rate

Total Amount of

Not packs, cartons, or

Date

Number

Sold, or Transferred to

$0.04975

Tax

cases

Note: Multiple Pages Can Be Used

TOTAL

IMPORTANT: Carry total from Column F of this schedule to Line I on Form CT-4A Indiana Cigarette Tax Stamp Order

*This schedule must be submitted and approved before credit can be claimed*

A person claiming a bad debt deduction on this schedule must complete in full the information required above and must attach all of the following:

1. A copy of the original invoice that supports each of the bad debts listed above

2. Evidence that the tobacco product was delivered to the purchaser (e.g. a bill of lading signed by the purchaser).

3. Evidence that the purchaser of the tobacco product did not pay the licensee and that the licensee has used reasonable collection practices to collect the debt.

(Proof of reasonable collection practices includes copies of delinquency letters, invoices showing past due amount, and/or copies of US Certified Mail cards

showing the person signed for the letter/invoice and/or refused to accept the letter/invoice)

NOTE: The delivery of tobacco products to a purchaser who is delinquent on a previous delivery of tobacco products may result in the department requiring additional

evidence that the licensee used reasonable collection practices to collect the debt.

4. Explain why you decided the debt was worthless. For example, you could show that the borrower had declared bankruptcy, or that legal action to collect

would probably not result in payment of this debt.

Failure to provide this information and documentation could result in this credit to be denied.

I certify under penalty of perjury that the information on this schedule and any attachments is true and complete to the best of my knowledge.

Authorized Signature/Title

Date