I failed to pay taxes for years 2003, 2004. When I paid my taxes for 2005 on time (in Feb of 2006), I paid nearly 25K for backtaxes for years 2003 and 2004 including all penalties.
I am now doing my taxes for 2006, were my payments in Feb of 06 for backtaxes, of 03 and 04 , in any way deductible for 06?
Thanks,
Ryan
2006-12-02 06:08:33 · 6 answers · asked by Ryan S 1 in Business & Finance ➔ Taxes ➔ United States
Since federal taxes are not decuctible on your federal return, they are not deductible now. They may be deductible on your state return; that depends upon state laws. Penalties are not deductible under any circumstances.
2006-12-02 06:13:09 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
It might be worth your while to get a tax accountant working on this. Any good one should know right off the bat.
2006-12-02 14:13:13 · answer #2 · answered by Anonymous · 1⤊ 0⤋
No.
You already got the "deduction" for those taxes in the previous years, you don't get to take it again when you actually pay it.
2006-12-02 14:14:07 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Go to H & R Block or someone like them. Have them do your taxes this year. They will be able to defend you if audited.
2006-12-02 14:12:30 · answer #4 · answered by drgnotary 3 · 0⤊ 1⤋
A good lawyer may be tax deductible. I'd get one fast......................
2006-12-02 14:10:03 · answer #5 · answered by CxeLady 3 · 0⤊ 1⤋
yeah right, you wish.
2006-12-02 14:10:54 · answer #6 · answered by Anonymous · 0⤊ 0⤋