IR-2020-94: IRS provides guidance on the deductibility and reporting of certain amounts paid to, or at the direction of, governments

IRS Newswire May 12,2020
News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Compliance & Enforcement Contact My Local Office Filing Options Forms & Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media	Issue Number:    IR-2020-94 Inside This Issue IRS provides guidance on the deductibility and reporting of certain amounts paid to, or at the direction of, governments WASHINGTON — The Internal Revenue Service today issued proposed regulations under the Tax Cuts and Jobs Act (TCJA) that provide guidance to taxpayers and governments with respect to fines, penalties and certain other amounts. The TCJA disallows a deduction for the payment of fines, penalties, and certain other amounts.  Specifically, taxpayers may not deduct amounts that, pursuant to court orders or settlement agreements, are paid to, or at the direction of, governments in relation to the violation of any law or the investigation or inquiry into the potential violation of any law. Under the TCJA, this disallowance may not apply to amounts that taxpayers establish, and court orders or settlement agreements identify, are paid as restitution, remediation, or to come into compliance with a law so long as the amounts otherwise qualify as deductible under the Internal Revenue Code. The proposed regulations describe how taxpayers may meet these requirements and define key terms and phrases such as restitution, remediation, and paid to come into compliance with a law. The TCJA also requires governments to report these amounts to the Internal Revenue Service and taxpayers.  The proposed regulations provide guidance to governments related to these reporting requirements. For more information about this and other TCJA provisions, visit IRS.gov/taxreform.   Back to Top         Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

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