Report the defective game as a played game on a separate Schedule B2. Attach an explanation of the game defect. If the defect was extra winners, list the actual prizes awarded including any “extra” prizes, even though the amount paid exceeds the ideal prizes for the game.
Questions?
Refer to the Minnesota Lawful Gambling Tax Forms and Instructions, or contact the Department of Revenue’s Lawful Gambling Tax Unit at 651-297-1772 or at www.revenue.state.mn.us/gambling-taxes.
Refunds are reported as follows:
Credit invoice (memo) from distributor
Cost and sales tax for returned games: Include the amount as a negative amount on the LG100A, Receipts and Expenses by Site, Line 11 (net credit against purchases for the month).
Refund check from distributor or manufacturer
If you are unsure how to account for a refund check, contact your Compliance Specialist at the Gambling Control Board.