settlement check to the Department of Justice

What expense account would a payment to the Dept. of Justice for settlement of a complaint show under?


--------------------------------------

That's a good question!

I've never come up against this one yet, but I have seen legal settlement payments before. My suggestion is to make a new account and call it "Dept of Justice Settlement Expense". You could alternataively post it to a "Professional Fees Expense" account, but I would also ask your tax preparer if it's a allowable as a tax deduction, just to be sure.

Hope that helps!

Kathy

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask the Expert!.