View Post

Fines and Penalties and Payments, Oh My! — The New Section 162(f)

In Fines by Zach MontgomeryLeave a Comment

Section 162 of the Internal Revenue Code outlines trade or business expenses that may be deductible over the course of a taxable year. In particular, before recent tax reform, Section 162(f) foreclosed the possibility of deducting any “fine or similar penalty” paid to the government for violation of any law. Regulations and case law provided some clarification of the scope …