Some states and municipalities give tax credits in exchange for payments by C corporations and pass-through entities. The IRS has created a safe harbor in which payments to these localities are considered ordinary and necessary deductible business expenses to the extent the tax credits received are commensurate with the payments.
Barbara Weltman
Big Ideas for Small Business, Inc.
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BOI reporting cont'd. But this isn’t the end of the story. The government filed a notice of appeal with the appellate court, and FinCEN says “deadline stay—voluntary submission only” (https://bit.ly/3ZpKxwU Note: There are cases challenging CTA that are still pending.