Tank Truck Rentals v. Commissioner
United States Tax Court
1. Fines paid by petitioner, engaged in the business of transporting bulk liquids by motor vehicles, for violation of State laws prescribing maximum weight limitations, are not deductible from its gross income as ordinary and necessary business expenses. 2. Where petitioner was obligated by contract to pay fines imposed upon drivers of its vehicles by the State of Pennsylvania for violation of weight limitation laws, and, during the taxable year, paid fines for such…
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1. Fines paid by petitioner, engaged in the business of transporting bulk liquids by motor vehicles, for violation of State laws prescribing maximum weight limitations, are not deductible from its gross income as ordinary and necessary business expenses. 2. Where petitioner was obligated by contract to pay fines imposed upon drivers of its vehicles by the State of Pennsylvania for violation of weight limitation laws, and, during the taxable year, paid fines for such violations, the amounts paid are not deductible under the provisions of section 23 (a) (1) (A) of the Internal Revenue Code of…
1Opinion of the Court
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…
2Cases cited14 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Lilly v. CommissionerSupreme Court of the United States · 1952
- Jerry Rossman Corporation v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1949
- Commonwealth v. BurallSuperior Court of Pennsylvania · 1941
- Great Northern Ry. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1930
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3Cited by1 opinion
- Tank Truck Rentals v. CommissionerUnited States Tax Court · 1956