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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2310
Experience:  IRS licensed Enrolled Agent and tax instructor
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I sold $65,000 25 years ago and I just paid the last $50,000

Customer Question

I sold $65,000 25 years ago and I just paid the last $50,000 off the IRS considered an income at the time and we made a deal with the IRS and pay taxes on the money which was stolen of the day of the rest and I had to pay taxes on it now that it's paid off can I take that off my taxes as a deduction
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Your question is little confusing. What did you sell? You said you sold $65,000 25 years ago.

Customer: replied 1 year ago.
I stold 65000 irs made me taxes I just paid the last 50000 can I deducton
Expert:  emc011075 replied 1 year ago.

And the $50,000 you paid IRS were for taxes and penalties, I am assuming.

Expert:  emc011075 replied 1 year ago.

Unfortunately, federal taxes and penalties are not deductible. But you can deduct state taxes you had to pay as result of the it. You would deduct it as part of our itemized deduction in the year you paid it.

Expert:  emc011075 replied 1 year ago.

From IRS publication:

https://www.irs.gov/publications/p17/ch22.html#en_US_2014_publink1000173206

Taxes you cannot deduct:

  • Federal income taxes. This includes income taxes withheld from your pay.

  • Fines and penalties. You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits.

Expert:  emc011075 replied 1 year ago.

Any questions? Is there anything else I can help you with today?

Expert:  emc011075 replied 1 year ago.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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