USA Attorneys fees formerly unreimbursed employee expense


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A previous employer exposed me to IRS trust fund recovery proceeding for unpaid payroll taxes. I eventually prevailed and was found not responsible by the IRS. It cost me a bundle of attorney fees. Are there any avenues for tax treatment?

The employer promised to cover my legal expenses. and did so while I was still employed. Then I left employment, and the company was also insolvent wihich led to bankruptcy filing. So they never reimbursed me.

So, it is both un-reimbursed employment expense and/or bad debt.

I think I'm wishing this was in 2017. Actually, the process started in 2017, but the legal fees were paid by me in 2018 as the case proceeded.
 

kirby

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Read IRS publication 529 - Miscellaneous Deductions. Legal fees related to doing or keeping your job are deductible as are unreimbursed employee expenses. The bad part is these deductions are usually subject to a limitation.
 
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Read IRS publication 529 - Miscellaneous Deductions. Legal fees related to doing or keeping your job are deductible as are unreimbursed employee expenses. The bad part is these deductions are usually subject to a limitation.
Thanks, I got the impression that this deduction got whacked in the 2018 tax law.
 
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kirby

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Wow, unfortunately you are correct.
 

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