Illegal bribes and kickbacks are not deductible as business expenses but fines imposed by a governmental unit are deductible as long as the fines are incurred in the ordinary course of business.

Question

Quizplus · Accepted Answer

Fines and penalties paid to a government for the violation of any law are not deductible as business expenses under the Internal Revenue Code.

Illegal Bribes and Kickbacks Are Not Deductible as Business Expenses