Montana § 15-68-505 Credit For Taxes Paid On Worthless Accounts -- Taxes Paid If Account Collected

Montana Statutes

§ 15-68-505 — Credit For Taxes Paid On Worthless Accounts -- Taxes Paid If Account Collected

Montana § 15-68-505

Title 15TAXATION

Ch. 68SALES TAX

Part 5Returns and Payment

This text of Montana § 15-68-505 (Credit For Taxes Paid On Worthless Accounts -- Taxes Paid If Account Collected) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 15-68-505 (2026).

Text

15-68-505 . Credit for taxes paid on worthless accounts -- taxes paid if account collected.

(1)Sales taxes paid by a person filing a return under 15-68-502 on sales found to be worthless and actually deducted by the person as a bad debt for federal income tax purposes may be credited on a subsequent payment of the tax.

(2)Bad debts may be deducted within 12 months after the month in which the bad debt has been charged off for federal income tax purposes. "Charged off for federal income tax purposes" includes the charging off of unpaid balances due on accounts as uncollectible or declaring as uncollectible such unpaid balance due on accounts in the case of a seller who is not required to file federal income tax returns.

(3)If an account is subsequently collected, the sales tax must be pa

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15-68-505 . Credit for taxes paid on worthless accounts -- taxes paid if account collected. (1) Sales taxes paid by a person filing a return under 15-68-502 on sales found to be worthless and actually deducted by the person as a bad debt for federal income tax purposes may be credited on a subsequent payment of the tax.
(2) Bad debts may be deducted within 12 months after the month in which the bad debt has been charged off for federal income tax purposes. "Charged off for federal income tax purposes" includes the charging off of unpaid balances due on accounts as uncollectible or declaring as uncollectible such unpaid balance due on accounts in the case of a seller who is not required to file federal income tax returns.
(3) If an account is subsequently collected, the sales tax must be paid on the amount collected.
(4) A seller may obtain a refund of tax on any amount of bad debt that exceeds the amount of taxable sales within a 12-month period defined by that bad debt.
(5) For purposes of computing a bad debt deduction or reporting a payment received on a previously claimed bad debt, any payments made on a debt or account are applied first to interest, service charges, and any other charges and second to the price of the property or service and sales tax on the property or service, proportionally.