Trucking Company Penalties & Fines
It happens and we’ve all received them; Tickets. Believe it or not, there is a logical reason as why authorities issue tickets to people breaking the law, however, this article is not going to address the reasons why a law is created and why civilization needs law, but what are the tax implications of receiving a penalty and/or fine.
Penalties & Fines
The IRS allows for all sorts of business deductions to offset business income, but one area which it does not allow are penalties and fines to be deducted when it’s paid to a government for the violation of any law. The IRS encourages taxpayers to be in compliance with local, state, and federal law, therefore enacted §162 (f) stating, “no deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law”.
Keeping this in mind, Trucking companies, as with any company, should try and limit their penalties and fines as no deduction is allowed.
See How We Can Help Today!!!