                                 CODE OF VIRGINIA

BAD DEBTS (§ 58.1-655)

In any return filed under the provisions of this chapter, the communications
services provider may credit, against the tax shown to be due on the return, the
amount of sales or use tax previously returned and paid on accounts that are
owed to the communications services provider and that have been found to be
worthless within the period covered by the return. The credit, however, shall
not exceed the amount of the uncollected payment determined by treating prior
payments on each debt as consisting of the same proportion of payment, sales
tax, and other nontaxable charges as in the total debt originally owed to the
communications services provider. The amount of accounts for which a credit has
been taken that are thereafter in whole or in part paid to the communications
services provider shall be included in the first return filed after such
collection.

HISTORY: 2006, c. 780.