California Revenue and Taxation Code

§ 6055

RTC § 6055 Effective Jun 27, 2024Div. 2 · Part 1 · Ch. 2 · Art. 1

Statute text

(a)(1) A retailer is relieved from liability for sales tax that became due and payable, insofar as the measure of the tax is represented by accounts that have been found to be worthless and charged off for income tax purposes by the retailer or, if the retailer is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A retailer that has previously paid the tax may, under rules and regulations prescribed by the department, take as a deduction the amount found worthless and charged off by the retailer. If these accounts are thereafter in whole or in part collected by the retailer, the amount collected shall be included in the first return filed after the collection and the tax shall be paid with the return.

(2)(A) Before January 1, 2025, for purposes of this subdivision, the term “retailer” shall include any entity affiliated with the retailer under Section 1504 of Title 26 of the United States Code.

(B)An entity that is a retailer under this paragraph shall not be entitled to a deduction under paragraph (1) on or after January 1, 2025.

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Legislative history

Amended by Stats. 2024, Ch. 34, Sec. 9. (SB 167) Effective June 27, 2024. Repealed as of January 1, 2028, by its own provisions. See later operative version added by Sec. 10 of Stats. 2024, Ch. 34.