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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15580
Experience:  15years with H & R Block. Divisional leader, Instructor
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We are 2 members LLC. Its a small business. After doing our

Customer Question

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: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


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 1 year ago.
We paid the invoice on January 2016. We can not add this for year 2015, expense?
Expert:  Robin D. replied 1 year ago.

Unfortunately no unless you paid in 2015.