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!


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