                                 CODE OF VIRGINIA

BAD DEBTS (§ 58.1-2299)

A. In any return filed under the provisions of this chapter, a distributor may
credit, against the tax shown to be due on the return, the amount of tax
previously returned and paid on accounts which are owed to the distributor and
which have been found to be worthless within the period covered by the return.
The credit, however, shall not exceed the amount of tax due pursuant to &#xA7;
58.1-2295 for the relevant applied period for the fuel delivered to the
worthless accounts. The amount of accounts for which a credit has been taken
that are thereafter in whole or in part paid to the dealer shall be included in
the first return filed after such collection.

B. Notwithstanding any other provision of this section, a distributor whose
volume and character of uncollectible accounts, including checks returned for
insufficient funds, renders it impractical to substantiate the credit on an
account-by-account basis may, subject to the approval of the Department, utilize
an alternative method of substantiating the credit.

HISTORY: 2012, cc. 217, 225; 2018, cc. 797, 798.