Are Auto Company Payments of NHTSA Fines Tax Deductible?
Recently I asked NHTSA about whether the $70 million Honda fine was tax deductible or not. NHTSA seemed not to know – or care.
Now we read the following:“Carmakers are far from the only companies that can exploit loopholes that allow them to lower their tax bill by deducting fines, forfeitures and other payments related to wrongdoing. Although the tax law forbids deductions for criminal fines and penalties owed to the government, other kinds of payments — to compensate victims or correct damages — are eligible for a tax deduction.” Seehttp://www.nytimes.com/2015/02/04/business/when-a-company-is-fined-taxpayers-often-share-the-punishment.html?_r=0
NHTSA officials now know for sure. Will NHTSA care? As long as it remains a captive agency without management changes at the top by Administrator Rosekind, NHTSA is not likely to care.