How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13344
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

We are 2 members LLC. Its a small business. After doing our

Customer Question

Hello,
We are 2 members LLC. Its a small business.
After doing our expenses and income we have profit in year of 2015.
However, we received the invoice from our Worker Comp company for the past year Audit and they found we owe them money.
Now, we have to pay Worker Comp company bill from our net profit.
Can we deduct the Worker Comp invoice as an expense and re-calculate profit we made in year of 2015 and show final Net Income ?
Submitted: 9 months ago.
Category: Tax
Expert:  Robin D. replied 9 months ago.

Hello

For partnerships and multiple-member LLCs, you would show this expense in the "Deductions" section of Form 1065. You can claim the deduction in the year paid so if you did not pay until 2016 you cannot claim on the 2015 tax return.

Customer: replied 9 months ago.
We paid the invoice on January 2016. We can not add this for year 2015, expense?
Expert:  Robin D. replied 9 months ago.

Unfortunately no unless you paid in 2015.