by Edward Melia, CPA
I paid IRS penalties and interest last year for a prior tax year. Are these payments valid deductions against my income last year?
Sorry. The law says that interest expense and penalties paid to the Internal Revenue Service for the current year or for a prior year’s tax liability are not deductible by individual taxpayers.
Edward A. Melia is a certified public accountant and an attorney in Sacramento. You may contact him at (916) 441-2006 or at firstname.lastname@example.org.
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In accordance with IRS Circular 230, the information on this website is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.