turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the Refund! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Mlemm2012
New Member

Louisiana Late Payment Interest on Payroll Withholding, Deductible or Not?

Is the interest paid to Louisiana state for late withholding taxes on my payroll a deductible expense for my business? What about late interest paid on sales tax? So, I know the penalties can not be used as an expense, but is the interest I paid deductible? Can I please get a rev doc or some kind of legal doc stating the answer to this. 

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
Kat
Level 15
Level 15

Louisiana Late Payment Interest on Payroll Withholding, Deductible or Not?

I've looked for a specific publication to verify the info included in the article linked below.  I haven't been able to locate a specific revenue code (either federal or state).  However, most states follow the federal rules for deductions of business expenses.  

 

That said, I don't believe you'd be able to expense either the penalties OR the interest on late payment of payroll withholding taxes in Louisiana.  It would be most unusual for the IRS to disallow expensing a penalty but allow deduction of the interest related to the penalty.  

 

I'll keep looking.  But check out the article linked below, which was the one I found most helpful in response to your question.

 

https://taxes.lovetoknow.com/tax-deductions-credits/is-interest-deductible-tax-penalties

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
Carl
Level 15

Louisiana Late Payment Interest on Payroll Withholding, Deductible or Not?

While the interest deduction is questionable, I do know that a tax deduction for late payment penalties on either state or federal taxes is flat out not deductible on the federal return.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies