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When can I write off an unpaid invoice?

Bookkeeping & accounting basics

When the debt is genuinely uncollectible, which means you can show reasonable collection efforts and a conclusion that payment will not arrive.

For accounting purposes you may carry an allowance for doubtful accounts earlier. The tax deduction comes later and needs the facts behind it documented.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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