M Corp was indicted under sec- tion 1 of the Xxxxxxx Anti-Trust Act (15 U.S.C. 1) for fixing and maintaining prices of certain electrical products. M Corp. was con- victed and was fined $50,000. The United States sued M Corp. under section 4A of the Xxxxxxx Act (15 U.S.C. 15a) for $100,000, the amount of the actual damages resulting from the price fixing of which M Corp. was con- victed. Pursuant to a final judgment entered in the civil action. M Corp. paid the United States $100,000 in damages. Section 162(f) pre- cludes M Corp. from deducting the fine of $50,000 as a trade or business expense. Sec- tion 162(f) does not preclude it from deduct- ing the $100,000 paid to the United States as actual damages. Internal Revenue Service, Treasury § 1.162–22 Example 2. N Corp. was found to have vio- lated 33 U.S.C. 1321(b)(3) when a vessel it op- erated discharged oil in harmful quantities into the navigable waters of the United States. A civil penalty under 33 U.S.C. 1321(b)(6) of $5,000 was assessed against N Corp. with respect to the discharge. N Corp. paid $5,000 to the Coast Guard in payment of the civil penalty. Section 162(f) precludes N Corp. from deducting the $5,000 penalty.
M Corp may assign its rights and delegate its duties under this Agreement to its successors in interest. This Agreement shall inure to the benefit of, and be binding on, the successors and assigns of M Corp. and, subject to the restrictions on transfer herein set forth, be binding upon Holder, Holder's heirs, executors, administrators, successors, and assigns.
