Aa Aa E 2. Leases and taxes Leasing is a very lucrative source of financing for certain companies' needs including corporations and small- to medium-sized businesses. This is because the Internal Revenue Service (IRS) allows the lessee to deduct the lease payments and the lessor can deduct interest payments on any debt used to finance the asset leased. To be able to deduct lease payments, IRS guidelines must be followed. An agreement that meets IRS requirements to qualify as a genuine lease is called Diana is a lawyer at Leaseonic Corp. She is evaluating the company's current lease agreements. Diana recently hired an intern, Michael, and assigned him the task of listing the provisions for tax guidelines related to lease contracts Diana needs to check and find mistakes in the provisions that Michael listed