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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.

11 minute read August 01, 2016 at 12:00 AM
By
David E. Kahen and Elliot Pisem
Recent Guidance Regarding Deduction of Fines

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.”

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