1. That's literally not true, you're just making stuff up: https://www.investopedia.com/ask/answers/102915/are-irs-penalties-tax-deductible.asp https://www.inve

1. That's literally not true, you're just making stuff up: https://www.investopedia.com/ask/answers/102915/are-irs-penalties-tax-deductible.asp https://www.investopedia.com/ask/answers/102915/are-irs-pena... 2. Even if it was, do you understand what a deduction is? You still lose money; you'd be changing the base on your federal income payments, but since your income tax is at most 40% or so, you're still paying at minimum 60% of the penalty (even if it was deductible, which it is not).