Can I claim my taxes from my escrow account?

Q: My mortgage company failed to pay two quarters of my taxes from my escrow account for 2003 until January of 2004. Can I still claim that for 2003, or do I have to wait until 2004? - Ken, Blackstone

The following answer was provided by James Castro, CPA, Castro Thresher & Oliveira PC, Attleboro.

A: Assuming like most individuals that you are a cash basis taxpayer, then you can only deduct the taxes in the year paid. In this case, 2004.

The following answer was provided by Barry Beck, CPA, Barry D Beck, CPA, PFS, DABFA, Bedford.

A: The escrow account is a special type of savings account. Usually the mortgage company reports to you deposits and withdrawals from the account. Perhaps you may have had the information to notice that the taxes were withdrawn. You are out of luck regarding the deduction on your personal return for the real estate taxes. There may also be late fees imposed by your city/town. If the mortgage company screwed up they may reimburse these fees.