Thursday, October 29, 2009
Colt v. US
COLT INDUSTRIES, INC., Plaintiff/Cross-Appellant, v. THE UNITED STATES, Defendant-Appellee No. 89-1165 UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT 880 F.2d 1311; 1989 U.S. App. LEXIS 10672; 89-2 U.S. Tax Cas. (CCH) P9450; 64 A.F.T.R.2d (RIA) 5231; 30 ERC (BNA) 1179; 19 ELR 21450 July 24, 1989, Decided Taxpayer was assessed civil penalties in a consent decree because it failed to eliminate violations of the Clean Air Act. In satisfaction of the civil penalties imposed by the consent decree, the taxpayer remitted payment. The taxpayer then claimed the payment as an ordinary business deduction under I.R.C. § 162(a). Does anything more clearly demonstrate the fact businesses see non-compliance fines as just an ordinary business cost?