The IRS has ruled fines and fees paid to companies should not be considered legally deductible as its position as a security regulator places the organisation in a similar authority to government agencies . While Finra issued 645 fines worth $ 132.6 m in 2014 , the court decision will impose restrictions on companies ' deduction of settlement fees , a ruling yet to be challenged in court .
The IRS has ruled fines and penalties paid to Finra should not be considered tax deductible as its position as a security regulator places the organisation in a similar authority to government agencies. While Finra issued 645 fines worth $132.6m in 2014, the IRS decision will enforce restrictions on companies' deduction of settlement costs, a position expected to be challenged in court.