Skip to main content

Newsroom

March 26, 2014

Deducting the Costs of a Government Settlement

“Taxes are inevitable, but not so deductions. And that has become an issue of late as the courts weigh in on whether a taxpayer — either an individual or a company — can deduct the costs related to a government enforcement action.

“A recent decision from the Court of Federal Claims in Washington looked at whether the forfeiture of the proceeds from insider trading qualifies for a deduction, raising the question of how the tax code may be seen as indirectly subsidizing wrongdoing.

“The law allows for the deduction of “any loss sustained during the taxable year and not compensated for by insurance or otherwise.” But another provision specifically excludes “any fine or similar penalty paid to a government for the violation of any law.” Criminal fines imposed by a court are clearly not deductible, but it is not so easy to categorize the treatment of orders requiring the forfeiture of the proceeds derived from criminal activity.”

***

Read full NY Times article here.

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today