DALLAS, Nov. 24, 2015 /PRNewswire/ -- The North Carolina Department of Revenue ("Department") issued a final determination regarding a taxpayer's right to claim a sales and use tax deduction for bad debts. The taxpayer in question had an agreement with a third-party bank to provide credit to its customers in the form of credit cards, which were owned by the bank. Upon reviewing the full record and other documents filed or submitted by the parties, the Department determined that the taxpayer did not meet all the requirements under the bad debt and, therefore, was not entitled to the deduction. The basis for the Department's determination included the fact that the bank and not the taxpayer held the benefits of holding the card account receivables, including the right to payment for interest and finance charges associated with each transaction and the ability to charge off bad debt on its federal income tax return when a cardholder defaulted. Due to this and other factors, the taxpayer's refund claim was denied. To read the full opinion, see Office Depot, Inc. v. North Carolina Department of Revenue, Office of Administrative Hearings, November 9, 2015.
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
TECHNICAL INFORMATION CONTACTS:
Jeremiah T. Lynch
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
ProfNet - http://www.profnetconnect.com/jeremiahlynch