I appreciate your response. I can understand that fines and penalties are not able to be deducted. That would be like deducting traffic tickets.
When I was audited for the sales tax, it was determined that I owed $2000 for the sales of product. Since I did not collect the sales tax from the buyers, I have had to cover that tax out of pocket. For simplicity sake, let's say the sales tax is 10%. If I sold my product for $100 the tax on that would be $10, which I'm now paying out of pocket. Effectively, doesn't that change the sale price of my product to $90 retroactively?
Since my products are now selling for 10% less my gross sales and net income is also affected during the audit period. Shouldn't there be a way to reflect that reduction on my taxes?
