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Tax Drill - Public Policy Limitations Indicate whether the following statements are True or False regarding the deduction disallowance provisions associated wit policy limitations. a.
Tax Drill - Public Policy Limitations Indicate whether the following statements are "True" or "False" regarding the deduction disallowance provisions associated wit policy limitations. a. The courts developed the principle that a payment in violation of public policy is not a necessary expense and is not deductible. b. Two-thirds of the treble damage payments made to claimants resulting from violation of the antitrust law are deductible expenditures. c. To be disallowed, the bribe or kickback must be illegal under either Federal or state law and must also subject the payor to a criminal penalty or the loss of a license or privilege to engage in a trade or business. d. Legal fees incurred in connection with a criminal defense are deductible only if the crime is associated with the taxpayer's trade or business or income-producing activity
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