Fines & Penalties

Forum|Forum|1 year ago
February 18, 2025
3 replies
10 views

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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Best answer by George4Tacks

I vote no. Violations of law produced these fines & penalties and they are not deductible.

George4TacksAnswer

Level 15

I vote no. Violations of law produced these fines & penalties and they are not deductible.

Answers are easy. Questions are hard!

IRonMaN

Level 15

I’ll second George’s no

Slava Ukraini!

ljr

Level 9

Fines and Penalties are never deductible.

and just to confirm our friend Google agrees when I doubled checked

BobKamman

Level 15

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.

IRonMaN

Level 15

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.

Slava Ukraini!

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