Waldman v. Commissioner
United States Tax Court
Petitioner pled guilty to one count of conspiracy to commit grand theft and was sentenced to prison. Execution of petitioner's sentence was stayed on condition that he pay specified amounts of restitution to his victims. Held, restitution paid pursuant to a criminal conviction or plea of guilty is a "fine or similar penalty paid to a government for the violation of any law" within the meaning of sec. 162(f), I.R.C. 1954, and thus may not be deducted under sec. 162(a).
1Opinion of the Court
OPINION
COHEN, Judge:
Respondent determined a deficiency of $41,883 in petitioner’s 1981 income tax. After concessions, the issue for decision is whether restitution paid pursuant to a criminal conviction is deductible under section 162.1
Background
Harvey Waldman (petitioner) resided in Marina Del Ray, California, when he filed his petition. His case was submitted fully stipulated, and the facts set forth in the stipulation are incorporated as our findings by this reference.
In 1967, petitioner formed National Home Loan Co. (NHL), a loan brokerage company. NHL was incorporated in 1970 with…
2Cases cited14 opinions
- People v. LentCalifornia Supreme Court · 1975
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- People v. RichardsCalifornia Supreme Court · 1976
- People v. VictorCalifornia Supreme Court · 1965
- Wing v. Forest Lawn Cemetery Assn.California Supreme Court · 1940
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3Cited by17 opinions
- Glen D. Wood, Karen Kraak Wood, and Karen Eslinger Wood v. United StatesCourt of Appeals for the Fifth Circuit · 1989
- Jon T. Stephens and Susanne Stephens v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1990
- Talley Industries Inc. Consolidated Subsidiaries v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1997
- Stephens v. CommissionerUnited States Tax Court · 1989
- Cavaretta v. Comm'rUnited States Tax Court · 2010
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