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I owe back taxes of about $77,000 and am on a payment plan

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with the IRS. I...
I owe back taxes of about $77,000 and am on a payment plan with the IRS. I am an S-CORP. I am paying myself a salary of $75,000 with all taxes being paid for the year. However, I still need to pay the monthly amount of past due money which I cannot pay with the $75,000. So, I have a pass through "profit" of an additional $25,000 from the SCORP that I can pay the IRS past due with. The question is, do I tax myself on the additional $25,000 or can the past due IRS payments be counted as a deduction of some kind.
Submitted: 1 year ago.Category: Tax
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9/8/2016
Tax Professional: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 1 year ago
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 537
Experience: Former IRS Revenue Agent
Verified

Dear Customer,

Please clarify what you meant by "do I tax myself on the additional $25,000".

Whether the tax you pay can be deducted depending on which type of tax. Payroll taxes you can deduct. However, if you deducted it before, you cannot deduct it again. The interest you pay is deductible. The penalty is not deductible on tax return.

Regards,

Fiona Chen, MPA, PH.D., CPA, ABV, CFF, CITP

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Dr. Fiona Chen
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 537
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Experience: Former IRS Revenue Agent

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