We mailed our second Tax year 2006 Property Tax installment in December of 2006 (sent via "standard mail"; no actual proof of mailing). Most recently I received a letter from the city, stating that they had not received that 12/2006 payment. Further, there is now a ~$200 penalty, for not paying in December. That semi- actual payment due was ~$7000. I have two inter-related questions:
1 - I have had friends (non-CPA) suggest that since I mailed the original payment in TY 2006, I could still claim that deduction for my 2006 filing. Is that a valid position? 2 - If I defer that itemized into the TY 2007 filing, is it possible to claim the $200 late fee as a deduction? Most appreciative for all guidance -- Thanks !!