Partner  Lawrence Hill (New York-Tax) recently wrote an article titled "What Does the New IRS Position Paper on Disgorgement Mean for FCPA Settlements?" that was published by The FCPA Report. The article analzyes the position paper issued by the IRS this spring announcing that certain disgorgement payments made to the SEC for FCPA violations were not deductible expenses under Internal Revenue Code Section 162(f).  The IRS did, however, leave open the possibility that in some other factual scenarios, FCPA disgorgement penalties could serve purposes that would allow them to qualify for deductibility.

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