Q: My company is being investigated for making illegal kickbacks. (I wasn't involved in the allegations.) If we are found guilty, are the payments at least tax deductible? No name, via e-mail
A: Sorry. Tax law says you can't deduct any direct or indirect payments that constitute illegal bribes, kickbacks or other payments that are illegal under U.S. or state law and subject you to a criminal penalty or the loss of a professional license. For this purpose, the IRS defines "kickbacks" as payments in consideration of the referral of a client, customer or patient. Note: On the flip side, illegal payments are fully taxable to the recipient.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/5682/no-deduction-for-kickback-penalty "