No. of Recommendations: 5
It wasn't a reimbursable expense type of situation - and we didn't think I was carrying this debt personally. The company received the bill and paid it. I had nothing to do with it. The company name is even on the credit card.

What your implied arrangement was or wasn't is not the issue. You are liable for the charges -- and the charges were made by you as an employee, which normally would be reimbursed by the company. Otherwise, unless you're running a charity, no one in their right mind buys things for the company they work for.

Doesn't matter whose name is printed on the card, nor does it matter who paid the bill. If you are liable for the charges, and the charges were made on behalf of the company in your capacity as an employee, you should be reimbursed.

Document all the charges. Then submit an expense report for the whole shebang to the company's officers. Even if they can't repay you, they should acknowledge that you should have been reimbursed. You will need this as ammunition if the IRS gives you a hard time. You might even be able to pass along the "bad debt" from yourself to the true source: your employer, which will be written off in the bankruptcy proceeding.

So: get thee to an accountant as quickly as possible. You can deduct unreimbursed employee expenses, which from what you describe, is how this situation should be interpreted by the IRS. Also see your own independent accountant, not whomever the company is using. You've already suffered enough from such conflicts of interest.

Note: I am not an accountant or lawyer. You might want to post this over on the Tax-related message board.

Sheesh. Some friends.
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