Mr. X owed $8,000 on his 2010 return. He has opted to make installment payments with the IRS for $300 a month. Total for the year of 2011 he has made $3000 in installment payments. Is he able to write-off this payment?
No, he is also unable to write off the interest (personal interest specifically excluded) or penalties on Federal tax debt (also specifically excluded)
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Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
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