[Anonymous]

Client is a partnership developer. If they pay their company real estate taxes late, are the penalty and interest deductible? What about the additional fee for filing their annual report late? I’ve looked far and wide and can find no definitive answer. I suppose the answer might come down to whether they broke the law because if they broke the law, then the answer is no. However, for other clients we are saying the fees for bouncing company checks (S-corp) ARE deductible. I would think that bouncing checks is a more serious offense than paying your real estate taxes late.

[littlenumberrobot]

Penalties are never deductible. But yes bank fees for bouncing checks are.

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REG - 66('11), 69('12), 12/06/12 77 PASSED!!
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[Author]

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