An audit of a grocery store business resulted in fines & penalties for the business because an employee allowed a customer to purchase products that were not allowed to be purchased with food stamps. Under these circumstances would these fines & penalties be an allowed deduction on Schedule C.
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I vote no. Violations of law produced these fines & penalties and they are not deductible.
I vote no. Violations of law produced these fines & penalties and they are not deductible.
Who did the audit? How did they come up with the amount owed? Was it the Department of Agriculture, and they said "you sold $500 worth of stuff that did not qualify, so you owe us $500?" That's called restitution, and it's deductible.
Sometimes facts are useful before jumping to conclusions.
No jumping here. Someone said their client paid fines and penalties. I'll take them at their word rather than play Jeopardy and pick a question rather than an answer.
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