year end accruals

[spanel]

Typically I will expense in december, sales tax & payroll taxes payable even though not paid until january.

My question is this.. I have a client that hasnt pad their sales and payroll taxes for six months (dont know how the business doesnt have a lock on the door)..

Would you expense all six months or just december or?

Thanks!!

Chris

[Anarchrist]

I wouldn't expense any at this point. I'd wait to see if he pays any of them by the due date of the return. Off the top of my head, I think accruals have to actually be paid within 2.5 months of year end.

[kathyc2]

Sales tax collected and employee taxes withheld are never an expense.

[Rapid Robert]

Do not deduct state and local sales
taxes imposed on the buyer that you
must collect and pay over to the state
or local government. Also, do not include these
taxes in gross receipts or sales.

You can deduct the employment taxes you must pay
from your own funds as taxes.

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