Write Deadbeat Clients Off
Squeeze some dough out of the clients who stiffed you.
One silver lining in an uncollectable debt situation is that the IRS allows business owners to write off bad debts. Under current law, each individual bad debt must be identified and deducted in the year in which it becomes partly or totally worthless-after about six months. Remember to keep a paper trail-including dated invoices-showing that you took reasonable steps to collect the money due you.