Jana Queen, a Texas corporation providing charter aircraft services, paid $250,000 to settle a lawsuit against it. The plaintiff sued because a Jana Queen pilot was in possession of cocain while providing the charter flight. The IRS denied the deduction as a business expense, citing US. vs. Gilmore, 372 U.S. 39 (1963). Jana Queen paid the extra resulting tax and then sued to recover its payment. What does the Gilmore rule provide for and what is the probable result of the Jana Queen litigation?