Are Fines, Penalties, or Violations Tax Deductible?

Are Fines, Penalties, or Violations Tax Deductible?

No. Neither are parking tickets while on a business meeting or health department violations for your restaurant. 

According to Internal Revenue Code Sec 162, you cannot deduct fines or penalties paid to the government.  This includes local, state, federal & foreign.  Bottom line, the IRS does not want to promote breaking the law.

So even though you may have received that parking ticket because your business meeting ran 15 minutes too late, that expense is not tax deductible.

However, if you are fined by a local government and hire an attorney or CPA to represent you in litigating / addressing the case; those fees are tax deductible.