UGH! Franchise Fee fiasco

[MAJ]

Well... Not sure why but I took a franchise fee off on a clients return as a single deduction.
I should have posted here.. Not sure why I didn't.

So the return is gone and the refund most likely received.
So Section 197 states it should be amortized over 180 months or 15 years.
Is that cut and dry - Is there any inkling of a chance that I can salvage the egg on my face??

Your help is ALWAYS greatly appreciated.

MAJ

[S T]

Well maybe all is not leaving egg on your face!

Question - OP does not really provide all of the information

Is this a new start up and the client paid the Franchise Fee which was the initial Franchise Fee

Or is this an annual Franchise Fee that has to be paid

Example - I had a client that was charged $ 50,000 Franchise Fee when he acquired - that was Amortized

the following year he has another "annual" franchise fee per year of $ 5,000, and a continuing Annual Franchise Fee for subsequent years, that I expense.

Sandy

[MAJ]

The Egg is running right down my face.

This was an initial start-up Franchise fee. I am not aware of any additional fees moving forward.
This business has not started up yet and I do not see it happening over the next year either. Hopefully I am wrong.
Ugh.. Amended return huh??

[JohnH]

Just tell the client what happened. Have the amended return ready for them to sign. Explain to them that this just puts them where they would have been if the error hand't occurred. Get it all done bedfore Apr 15 and there won't be any penalty or interest. These things happen.