¹ See U.S. Dept. of Justice, Office of Dep. Att’y Gen. Memo. (1/20/03), available at www.usdoj.gov/dag/cftf/corporate_guidelines.htm.

² See id. at p.3.

³ See id. at p.5.

⁴ Louis Oden, TC Memo 1988-567.

⁵ See Chicago Dock and Canal Co., 84 F2d 288 (7th Cir. 1936) and S.B. Heininger, 320 US 467 (1944).

⁶ Welch v. Helvering, 290 US 111 (1933).

⁷ See Harry Kanelos, 2 TCM 806 (1943).

⁸ See Thomas P. Lilly, 343 US 90 (1952).

⁹ For deductions under Sec. 212, the taxpayer must show the requisite nexus between the income-producing or investment activities and the expense.

¹⁰ See Aaron Michaels, 12 TC 17 (1949), acq., 1949-1 CB 3; and Leo M. Harvey, 171 F2d 952 (9th Cir. 1949).

¹¹ See Samuel J. Kornhauser, 276 US 145 (1928); C. Fink Fisher, 50 TC 164 (1968); and Northwestern Indiana Tel. Co., TC Memo 1996-168, aff’d, 127 F3d 643 (7th Cir. 1997).

¹² See Walter F. Teillier, 383 US 687 (1966); Central Coat, Apron & Linen Service, Inc., 298 FSupp 1201 (SD NY 1969); and Allied Signal, Inc., TC Memo 1992-204, aff’d, 54 F3d 767 (3d Cir. 1995).

¹³ Donald Gilmore, 372 US 39 (1963), rev’g 290 F2d 942 (Ct. Cl. 1961).

¹⁴ Donald Gilmore, id., on remand, 245 FSupp 383 (ND Cal. 1965).

¹⁵ See Ecco High Frequency Corp., 167 F2d 583 (2d Cir. 1948), cert. den., and Jack’s Maintenance Contractors, Inc., 703 F2d 154 (5th Cir. 1983).

¹⁶ See Central Foundry Co., 49 TC 234 (1967), acq., 1968-2 CB 2; Larchfield Corp., 373 F2d 159 (2d Cir. 1966); B.T. Harris Corp., 30 TC 635 (1958), acq., 1958-2 CB 5; and Shoe Corp. of America, 29 TC 297 (1957), acq., 1958-2 CB 7.

¹⁷ Jack’s Maintenance Contractors, Inc., 703 F2d 154 (5th Cir. 1983); Greenstein & Scheer, PC, 113 TC 135 (1999); Lenward C. Hood, 115 TC 172 (2000); Northwestern Indiana Tel. Co., note 11 supra; and Capital Video Corp., 311 F3d 458 (1st Cir. 2002).

¹⁸ Compare with Sec. 162(a).

¹⁹ See Burroughs Building Material Co., 47 F2d 178 (2d Cir. 1931); see also Allied‑Signal, Inc., note 12 supra.

²⁰ See Tank Truck Rentals, Inc., 356 US 30 (1958).

²¹ See Larsen and Michaels, “MCI Fined Record $500M over Fraud Charges,” Financial Times  (5/20/03), p. 1.

²² See Wood, “Should the Securities Industry Settlement Be Deductible?,” 99 Tax Notes 101 (4/7/03).

²³ See Zuckerman, “Wall Street Settlement Will be Less Taxing,” Wall Street Journal (2/13/03) p. C1, C9. The bulk of the securities industry settlement, more than $1 billion, went toward investor restitution, education and dissemination of independent research (all  deductible business expenses).

²⁴ See “Tax Deductions Will Help Exxon Slip Away From Much of its Oil Spill Liability Says CRS,” Tax Analysts Highlights & Documents (3/21/91), p. 2853.

²⁵ See Secs. 67(a) and 68(a).

²⁶ See Ellis McDonald, SD AL, 12/23/97.

²⁷ Thomas O’Malley, 91 TC 352 (1988).

²⁸ See Frank J. Matula, 40 TC 914 (1963); and Irving Sachs, 32 TC 815 (1959), aff’d, 277 F2d 879 (8th Cir. 1960).

²⁹ Old Colony Trust Co., 279 US 716 (1929).

³⁰ See, e.g., Ethel West Cotnam, 263 F2d 119 (5th Cir. 1959); Est. of Arthur Clarks, 202 F3d 854 (6th Cir. 2000); Willie Mae Davis, 210 F3d 1346 (11th Cir. 2000); and Sudhir Srivastava, 220 F3d 353 (5th Cir. 2000).

³¹ See, e.g., Wood and Daher, “Attorneys’ Fee Saga Continues: Maverick Circuit Says, ‘Oregon Good, California Bad,’” 101 Tax Notes 91 (9/30/03); Wood and Daher, “Attorney Fees: Rebellious Circuit Don’t Need No Stinkin’ Lien Law,” 101 Tax Notes 1427 (12/11/03); and Wood, “Everybody Loves Raymond? Second Circuit Further Fouls Tax Treatment of Attorney Fees,” 102 Tax Notes 1639 (3/19/04).

³² See John W. Banks II, Sup. Ct., 1/24/05, rev’g 345 F3d 373 (6th Cir. 2003) and 340 F3d 1074 (9th Cir 2003).