The amount of the addition to the reserve for bad debts for an accrual method taxpayer is allowed as a deduction for tax purposes.

Name: The amount of the addition to the reserve for bad debts for an accrual method taxpayer is allowed as a deduction for tax purposes.
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The tax code does not allow a deduction for additions to a reserve for bad debts; instead, it allows a deduction for specific bad debts that become worthless within the tax year.

The Amount of the Addition to the Reserve for Bad