Tax Penalty

[TAX]

Client, C corp(1120) paid tax penalty from business account in 2008

(1) Can you deduct on Tax return - Previous tax preparer did

(2) How do you report on book (QuickBooks) vs tax return (ProSeries)?
May be: Deduct on book but distribution on corp tax return?

Thank you for your help!

[Uncle Sam]

Tax Penalty

Client, C corp(1120) paid tax penalty from business account in 2008

(1) Can you deduct on Tax return - Previous tax preparer did

(2) How do you report on book (QuickBooks) vs tax return (ProSeries)?
May be: Deduct on book but distribution on corp tax return?

Thank you for your help!

1) No.

2) Deduct on books. On corporation return, on Schedule M-1, it's a nondeductible expense (Items deducted on books but not tax return).