Interest on back taxes deductible?

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Interest on back taxes deductible?

I have been in a payment plan with the IRS for 4 years, during that time I have accrued a lot of interest. I am wondering if any of that is deductible when I file subsequent years or amend the years previous.

2007-04-13 10:06:28 · 3 answers · asked by David D 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

In general, personal interest is not deductible.

2007-04-13 10:09:03 · answer #1 · answered by Molly 6 · 0⤊ 0⤋

No, interest paid to the IRS on personal taxes is not allowed. They used to allow a deduction on interest paid to the IRS if it was related to business (Schedule C) income, but they changed the rules.

2007-04-13 11:17:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋

It is consider personal interest and, as such, not deductible.

2007-04-13 10:57:25 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋