Raymond Bertolini Trucking Company v. Commissioner of Internal Revenue

CORNELIA G. KENNEDY, Circuit Judge.

Petitioner Raymond Bertolini Trucking Company (RBTC) appeals the Tax Court’s decision affirming the Commissioner’s dis-allowance of RBTC’s deduction of certain lawfully made kickback payments as ordinary and necessary business expenses, under I.R.C. § 162(a). 1 We reverse the Tax Court’s decision and find that petitioner was entitled to take these deductions.

RBTC is an Ohio corporation based in Akron. RBTC became a subcontractor at a large shopping mall construction site in Akron under the primary contractor, Forest City Enterprises, Inc. (Forest City) when…