...pays his IRS tax lien that came from a trust fund recovery penalty...
We need to know what actually is included into that payment.. what type of taxes are owned, etc.
If that is an IRS tax lien - it is not connected to property or real estate taxes - so that issue is out of picture.
I assume that it will include
- interest - not deductible
- penalties - not deductible
- employment taxes - not directly deductible, but may be partly deductible for the corporation - in some situation the deduction may be passed to shareholder
- income taxes owed by the corporation - not deductible
- sales taxes owned by the corporation - not deductible
Also if your husband pays something for the corporation - that may be considered as his loan to the corporation. If the corporation is not able to pay the loan back - that may be claimed as business loss.