Write Deadbeat Clients Off

Squeeze some dough out of the clients who stiffed you.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

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.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.