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.
No deductions are allowed for expenditures against public policy.

Question

Quizplus · Accepted Answer

Fines imposed by a governmental unit are not deductible as business expenses because they are considered against public policy, similar to illegal bribes and kickbacks.

Illegal Bribes and Kickbacks Are Not Deductible as Business Expenses