Nation IN BRIEF : NEW YORK : Part of Milken Fine May Be a Writeoff

Two-thirds of the $600 million in penalties and fines assessed against junk bond king Michael Milken last week may be tax deductible, according to a magazine report. Quoting Milken representatives, New York magazine said that because $400 million is to go into a restitution fund for victimized investors, it could be fully tax deductible as an ordinary cost of doing business. The magazine also said that Milken and the government apparently sidestepped rules that now discourage judges from accepting plea agreements that fail to reflect the seriousness of a case. The magazine said that apparently a deal was worked out based on offenses before November, 1987, when new federal sentencing guidelines took effect.