Iowa Admin. Code r. 701-260.6 - [Effective 4/23/2025] Supplier credit-uncollectible account
(1)
Generally. A licensed
supplier who is unable to recover the tax from an eligible purchaser or end
user is not liable for the tax and may credit the amount of unpaid tax against
a later remittance of tax.
(2)
Qualification for credit.
a.
To qualify for the credit, the supplier must notify the department in writing
of the uncollectible account no later than ten calendar days after the due date
for payment of the tax.
b.
Notification is to be provided to the department via email at
idrmotorfuel@iowa.gov. The notification must include all information required
by the department.
c.
Disqualification for credit.
(1) A supplier
does not qualify for the credit if the purchaser did not elect to apply for the
eligible purchaser or end user status or did not qualify to be an eligible
purchaser.
(2) The credit does not
apply if the supplier sells additional fuel to a delinquent eligible purchaser
or end user after notifying the department that the supplier has an
uncollectible debt with an eligible purchaser.
(3)
Cancellation of eligible
status. Upon notification from the supplier that an eligible purchaser
is in default of the tax payment, that person's eligible purchaser or end user
status will be canceled by the department. The eligible purchaser or end user
status will not be reinstated until such time as the purchaser posts securities
to guarantee future tax payments as provided in 701-paragraph
259.17(1)"d."
(4)
Eligible purchasers.
a.
Registration. Any distributor of motor fuel or special fuel or
end user of special fuel who requests authorization to make delayed payments of
the motor vehicle fuel tax must first register with the department to become an
eligible purchaser.
b.
Payment of tax. The eligible purchaser must pay the tax to the
supplier by electronic funds transfer one business day prior to the date the
tax is to be paid by the supplier.
c.
Validity. Once approved,
the eligible purchaser status is valid until voluntarily canceled by the
eligible purchaser or canceled by the department of revenue. More information
is contained in 701-subrule 259.18(4).
This rule is intended to implement Iowa Code section 452A.8.
Notes
ARC 6508C, IAB 9/7/22, effective 10/12/22
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