Tank Truck Rentals, Inc. v. Commissioner

OPINION.

Raum, Judge:

Petitioner seeks to deduct, under section 23 (a) (1) of the Internal Revenue Code of 1939, the fines and costs paid by it in 1951 for operating motor vehicles in violation of State weight limitation laws. Its principal contention is that such payments constituted ordinary and necessary business expenses. Since most of the violations occurred in Pennsylvania, we shall consider that contention first in relation to the fines paid to that State.

Pennsylvania had lower weight limits than the other States, and petitioner’s vehicles when fully loaded with liquids other than…