Can taxpayers take a deduction for fines and penalties they pay? Generally, no, but the IRS has issued proposed guidelines that include exceptions. The Tax Cuts and Jobs Act (TCJA) disallows tax deductions for fines, penalties and certain amounts a taxpayer must pay by court order or settlement agreement, related to a violation of law or investigation into a possible violation. However, the TCJA states that taxpayers may be able to deduct payments that otherwise qualify as deductible under tax law, if the payments are made by court order or settlement agreement as restitution or remediation. The proposed regs describe how taxpayers can meet these requirements. Call or visit our website for more information! www.mjscpa.com/
