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Deductions & credits
Adding one bit of detail to clarify matters a bit.
One might wonder why the company didn't file for bankruptcy and why ordinary employees had to take legal protection at personal level.
The answer is that the company had a branch office offshore where a lot of the creditors reside. US bankruptcy protection doesn't help there. Legal fees and settlements took place offshore. The D&O Insurance payment took place in the US, and hence is subject to US taxes.
May 31, 2020
10:33 PM