Hoover Motor Express Co., Inc. v. United States - 356 U.S. 38 (1958)

U.S. Supreme Court

Hoover Motor Express Co., Inc. v. United States, 356 U.S. 38 (1958)

Hoover Motor Express Co., Inc. v. United States

No. 95

Argued January 29-30, 1958

Decided March 17, 1958

356 U.S. 38

Syllabus

Fines paid by a truck owner for inadvertent violations of state maximum weight laws are not deductible as "ordinary and necessary" business expenses under § 23(a)(1)(A) of the Internal Revenue Code of 1939. Pp. 356 U. S. 38-40.

(a) In this case, it does not appear that the truck owner took all reasonable precautions to avoid the fines. 356 U. S. 39-40.

(b) Even assuming all due care and no willful intent, allowance of the deduction would severely and directly frustrate state policy. P. 356 U. S. 40.

241 F.2d 459 affirmed.