DianeW777
Expert Alumni

Business & farm

Yes, if you are in business, filing Schedule C, you can take a deduction in the current year for the sales tax portion only, that you were required to pay after the audit.  You can also deduct any interest  portion paid.  As stated by @MaryK4, fines and penalties are never deductible as an expense.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post