Originally Posted by DCBob
...To clarify this answer: The portion of the fee allocable to taxes on business income is deductible as a business expense (e.g., on Schedule C or C-EZ); the portion of the fee allocable to taxes on nonbusiness income is not deductible as a business expense.
Fair enough -- I guess I thought it was obvious that only taxes stemming from the business income would be a deductible business expense.