Unpaid invoices
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Can I Write Off Unpaid Invoices?
Short answer: Only if you use accrual accounting and already reported the invoice as income; cash-basis businesses can't deduct unpaid invoices.
You must show the debt is worthless and you tried to collect.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00704
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Unpaid invoices
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General Business
Other Expenses
Business Write-Off Questions
Only if you use accrual accounting and already reported the invoice as income; cash-basis businesses can't deduct unpaid invoices.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Only if you use accrual accounting and already reported the invoice as income; cash-basis businesses can't deduct unpaid invoices. You must show the debt is worthless and you tried to collect.
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