AU-474-I
(3/95)
Instructions for Form AU-474
Application for Refund of the Petroleum
Business Tax Because of a Bad Debt
General Information
Instructions
Complete the identification number, telephone number, business
Who May Use This Form
name and address boxes in full.
A petroleum business or aviation business registered as such with
Line 1 Check each type of registration that applies to your
the Tax Department at the time of sale must file Form AU-474 to
business.
claim a bad debt refund. Bad debts cannot be applied as either a
Line 2 Enter the type of federal return and the period covered by
credit or an off-set on the petroleum business tax return.
the return on which you deducted the bad debt.
Line 3 For each sale that became a bad debt, complete columns
A through G as follows:
When to File
Column A — Enter the date of the sale of the petroleum
You must file this form within two years from the time that the debt
to the account that has been determined uncollectible.
was written off and deducted as a worthless debt for federal
Column B — Enter the account name; if the name has
income tax purposes. You are not required to pursue legal action to
changed since the date of sale, also enter the new name.
demonstrate that a debt is uncollectible.
Column C — Enter the tax period (quarterly or monthly) in
which you paid the petroleum business tax on your return.
For diesel product and residual petroleum product, this is
What Sales Qualify for the Bad Debt Refund
the tax period in which the fuel was sold. For gasoline and
other motor fuel it is the tax period in which the fuel was
Sales made on or after September 1, 1994, by a petroleum
imported into or produced in New York State.
business or an aviation fuel business, of fuel in-bulk to a purchaser
Column D — Enter the type of product sold: gasoline,
for the purchaser’s own use and consumption, or of motor fuel or
gasohol, diesel fuel, kerosene, kero-jet fuel, residual
enhanced diesel motor fuel in-bulk to a filling station, may qualify
petroleum product, propane, etc.
for the bad debt refund. However, neither a retail sale at a filling
Column E — Enter the amount that remains due on the
station nor any other sale where the fuel is delivered directly into
sale. The selling price can include charges directly
the fuel tank of a motor vehicle, airplane or other conveyance
associated with the sale (taxes, shipping, handling, etc.)
qualifies for the refund. To claim a refund of tax paid on a debt
but not finance charges for late payment following the
written off, the petroleum business or aviation fuel business must
sale. If payment was made on the account, complete the
have paid the imposed tax to the Tax Department on its return.
Worksheet for Partial Payments.
Column F — Enter the amount of petroleum business tax
per gallon that you paid on the uncollectible sale. If not
Refund Amount
listed on the invoice, consult Publication 908, Article 13-A
Tax Rates, to determine the rate per gallon.
The amount of the refund will equal the amount of petroleum
Column G — Enter the amount of petroleum business tax
business tax imposed and remitted on an account that is
included on the invoice. If not listed, multiply the gallons
determined uncollectible. If partial payments have been made, the
sold by the rate (column F) and enter that amount. If
refund is computed reflecting the apportionment of the payments
partial payment has been made, enter the amount from
between the petroleum business tax and other components of the
line (f) of the Worksheet for Partial Payments for this
total selling price. Payments should be applied to the earliest
account.
charges in the account.
Total — Add all amounts in column G including the totals
from additional sheets that may have been necessary.
Note: You should report any refund of the petroleum business tax
This amount is the calculated refund.
received because of bad debt as income on your state
franchise or income tax return (also any federal return) for
Worksheet for Partial Payments
the year in which you received the refund.
Instructions
Line (a) — Enter selling price including charges directly associated
Subsequent Payments on the Bad Debt Account
with the sale (taxes, shipping, handling, etc.) but not including
If you subsequently receive a payment on an account for which a
finance charges.
refund of the petroleum business tax was granted as a bad debt,
Line (b) — Petroleum business tax included in the selling price as
you must list such subsequent collection of any petroleum business
listed on the invoice. If not separately listed, consult
tax in the Schedule of Bad Debts of Form AU-474 as a negative
Publication 908, Article 13-A Tax Rates, to determine the rate per
amount. You should also report the subsequent collection as an
gallon. Multiply the rate times the number of gallons and enter the
offset to income on your state franchise or income tax return (also
amount.
on any federal return) for the year in which you received the
Line (c) — Divide the amount in line (b) by the amount in line (a).
payment.
Express this amount as a decimal. Carry to the nearest four
decimal places (e.g., .0001).
Line (d) — List total of payments applied to the sale.
Federal Disallowance of a Bad Debt
Line (e) — Multiply the amount on line (c) by the amount on line (d).
Any disallowance, for federal tax purposes, of a bad debt for which
Line (f) — Subtract line (e), amount of partial payment applied to
a refund of the petroleum business tax was paid, will be treated as
petroleum business tax from line (b), petroleum business tax
a report of federal change, correction or disallowance to the New
included in selling price. This is the refundable amount of the
York State Tax Department within 90 days after the final
petroleum business tax. Transfer this amount to column G of the
determination. A petroleum business or aviation fuel business that
Petroleum Business Tax Schedule of Bad Debts for this account. If
more than three accounts have partial payments, use additional
is a corporation filing a combined report under Article 9-A must
report such change within 120 days.
sheets.