why does the federal tax law disallow a business deduction for a fine or penalty paid to any government? multiple choice the payment of a fine or penalty is not an ordinary business expense. a deduction for the payment of a fine or penalty would be a subsidy for bad behavior and also against public policy. a deduction for the payment of a fine or penalty would distort the measurement of taxable income. the payment of a fine or penalty is not an expense for financial reporting purposes.
