Volumes have been written about the False Claims Act as a tool to pursue fraud against the government in circumstances where the defendant has allegedly made false statements to receive.
January 19, 2021
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On January 12, 2021, the Internal Revenue Service and Department of the Treasury released final regulations regarding the ability of taxpayers to deduct certain payments made to or at the direction of governments under Section 162(f) of the Internal Revenue Code.
1 Section 162(f) generally prohibits the deduction of amounts paid to governments, agencies and certain nongovernmental entities in relation to the violation of any law or the investigation into the potential violation of any law.
The final regulations largely follow the proposed regulations published in May 2020, with some important distinctions. For example, the final regulations address several taxpayer concerns raised by the proposed regulations, including reversing the bright-line rule denying deductions for disgorgements and forfeitures. Likewise, they modestly relax the rules regarding how the parties must identify the purpose for the payment in the operative documents. They also provi