Fillable Form St-Bdr-Meals - Claim For Bad Debt Reimbursement (Page 2 of 2) in pdf

Form ST-BDR-Meals Instructions

General Information

Line 3. Enter your total Massachusetts taxable sales of meals for

the previous fiscal year.

Under Massachusetts General Laws, Chapter 64H, sec. 33, Mass-

Line 4. Enter the total amount of meals tax remitted to DOR during

achusetts meals tax vendors who have remitted meals tax to the

Department of Revenue (DOR) on accounts which are later deter-

the previous fiscal year.

mined to be worthless may file a claim for reimbursement with

Line 5. Enter bad debt expense as indicated on your U.S. tax

DOR. This claim for reimbursement is effective for sales of meals

return (actual or pro forma) for the previous fiscal year.

determined to be worthless in the previous fiscal year, regardless

Line 6a. Enter the amount of taxable sales of meals occurring be-

of when the actual sale occurred. Bad debt reimbursements are

fore August 1, 2009 upon which a 5% meals tax has been remitted

issued without interest. Reimbursements may not be claimed

determined to be worthless during the previous fiscal year, regard-

on any other DOR return. Form ST-BDR-Meals must be mailed

less of when the actual sale occurred. For example, a 2007 credit

on or before the due date (including extensions) of your federal in-

sale may finally be determined to be worthless in 2009.

come tax return for sales of meals determined to be worthless in

the previous fiscal year. If you discover an error in your claim after

Line 6b. Enter the amount of taxable sales of meals occurring on

filing, you may file an amended claim on or before the due date

or after August 1, 2009 upon which a 6.25% meals tax has been

(including extensions) of your federal income tax return, by clearly

remitted determined to be worthless during the previous fiscal

writing “amended” at the top of the claim form.

year, regardless of when the actual sale occurred.

Vendors must include in gross receipts for their meals tax returns

Line 7a. Multiply the total in line 6a by .05 (5%). This is your reim-

all sales for the period in which the sales occur, regardless of

bursement for bad debts.

whether payment has been received. Vendors are not allowed to

Line 7b. Multiply the total in line 6b by .0625 (6.25%). This is your

subtract bad debts from gross receipts. Reimbursements for bad

reimbursement for bad debts.

debts on meals can only be made on an annual basis with Form

ST-BDR-Meals.

Penalties. Applicants that made false statements on Form ST-

BDR-Meals in order to receive a refund to which they are not enti-

Any vendor who recovers, in whole or in part, a bad debt for which

tled may be subject to the tax evasion penalties of M.G.L. Chapter

a reimbursement has been received must include the recovered

62C, sec. 73, including a felony conviction, a fine of not more than

amount in the gross receipts amount on the meals tax return cover-

$100,000 or $500,000 in the case of a corporation, or by imprison-

ing the period in which the recovery occurs. For example, you are

ment for not more than five years, or both, and may also be re-

a meals tax filer who receives reimbursement for a 2007 bad debt

quired to pay the costs of prosecution.

of $500. During October of 2009 you recover $300 of the bad debt.

You must include the $300 recovery amount in your gross receipts

Substantiating documentation. Substantiating documentation

on your October return.

must be included with every claim. You must attach an explanation

for each worthless sale showing the date the sale occurred, the

Note: Recovery of amounts taxable at 5% being reported on

amount of the sale, the buyer’s name and address, the buyer’s fed-

returns filed after August 1, 2009 should be included on the meals

eral identification number, if available, and all facts pertinent to your

tax return at 80% of the amount of the recovery.

determining the account to be worthless. If the volume of your sales

Taxpayers who change their fiscal year for federal tax purposes in

or your method of determining sales to be worthless does not al-

tax years after 1999 may include in their ST-BDR-Meals claim for

low you to comply with the preceding instructions, please refer to

the first fiscal year after the change any bad debts incurred after

TIR 00-3, Claiming the Bad Debt Reimbursement, for specific in-

the last day of their prior fiscal year and before the first day of their

structions. A sale is determined to be worthless when it is actually

new fiscal year, providing that these claims have not been included

written off as uncollectible for federal income tax purposes under

in any other ST-BDR-Meals. See Technical Information Release

IRC Section 166.

(TIR) 00-3, Claiming the Bad Debt Reimbursement.

You must also include:

To correct errors unrelated to bad debts do not file Form ST-BDR-

• If you are using the specific charge-off or aggregated proration

Meals. You must file an online Application for Abatement, at

method for claiming bad debts, a copy of the page from your U.S.

For further information regarding abatements

tax form (Form 1065, 1120, 1120A, 1120S or Schedule C or F)

or Form ST-BDR-Meals call the Customer Service Bureau at (617)

showing the bad debt deduction for the previous fiscal year; or

887-MDOR.

• If you are a cash method taxpayer, a detailed explanation of how

Line Instructions

sales are determined to be worthless.

Line 1. Enter your gross sales of meals (including non-Massachu-

Mail Form ST-BDR-Meals along with all attachments to: Massachu-

setts sales) for the previous fiscal year.

setts Department of Revenue, PO Box 7031, Boston, MA 02204.

Line 2. Enter your total gross Massachusetts sales of meals (tax-

able and non-taxable) for the previous fiscal year.

printed on recycled paper

Form St-Bdr-Meals - Claim For Bad Debt Reimbursement Page 2

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