Just before Russia invaded Ukraine on Feb. 23, President Biden announced sanctions against two Russian banks and those doing business in the so-called “Donetsk People’s Republic” and “Luhansk People’s Republic” regions of Ukraine. More sanctions are expected now that the invasion is underway. U.S. individuals and companies with overseas business are encouraged to review reporting requirements as well as the tax treatment for penalties imposed by the Treasury Department. In general, businesses can’t deduct amounts paid or incurred in relation to violating any law. If you receive a notice of sanctions or IRS Form 1098-F, work with your legal and tax advisors to respond properly.
Our Blog 