Internal Revenue Code section 162(f), which relates to fines and penalties that would otherwise constitute ordinary and necessary expenses deductible under Code ' 162(a), provides: “No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law.”
Recent Guidance Regarding Deduction of Fines
Internal Revenue Code ' 162 provides: "No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law." The controversies that continue to arise under ' 162(f) are illustrated by two memoranda released within the past few months.
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