by Michael Lodge
Many times clients file late and owe money. By the way, just because you filed an extension to file your tax return and you owe taxes – it does not stop interest and penalties. When this happens clients will always include that in their worksheet showing taxes paid. Is it deductible?
Question: Is the interest amount that we paid to the IRS deductible?
Interest and penalties paid to the IRS on federal taxes are not deductible.
That was a very quick response. So if you do have to pay interest and penalties for paying your taxes late – sorry – no deduction.
For more information, refer to:
- Items You Cannot Deduct in the Interest Expense chapter in Publication 17, Your Federal Income Tax for Individuals
- Publication 529, Miscellaneous Deductions
If you need tax help call our office at: 877.778.1770