When Penalties Are Punitve They Are Not Tax Deductible

The pain of penalties from improper activities can be significantly reduced when the penalties are tax deductible.  Code Section 162(f) provides that deduction will not be allowed "for any fine or similar penalty paid to a government for the violation of any law". An anonymous corporation, let's call it Briber Inc (BI), was looking for slack on that rule, but they were turned down by the Chief Counsel in CCA 201619008.