penalties on p\r tax deposits

[theresa d]

are penalties and interest paid by a corporation due to late payment of payroll taxes and sales tax deductible by the corporation? i could have sworn i read somewhere that if the expenses were incurred by a corporation they were deductible. can't find the reference. thanks for any help.

[Acownt4it]

Not

deductible for tax return, but they are deductible per books. TTB pg 25-4.

[veritas]

The interest is deductible. Penalties are not deductible.

[theresa d]

thanks

that was the conclusion i had come to thanks for the reinforcement.

[JON]

If 1040

Been to court and no deduction for even the interest..

[veritas]

I think you are speaking to interest on personal taxes on business income? If not can you cite your case?

[veritas]

Read publication 535 it says interest on employment taxes is deductible.

[JON]

THE title is IF 1040

I think you are speaking to interest on personal taxes on business income? If not can you cite your case?

If 1040 is the subject manner

[veritas]

Sorry Jon. I need to read the posts more carefully.