USA Unsure if sales tax paid after being audited is deductible on Sch C

[burbooks]

My client files a Sch C. He was unaware that he was responsible for collecting sales tax from his customers. He was audited by the state and was ordered to pay better that $30,000 to the state. He also paid $5,000 in interest. Are these deductible as a business expense?

 

[Drmdcpa]

Assuming a cash basis taxpayer, the sales tax should be deductible the year paid. The interest is questionable.