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No Tax Deductions for Defamation Settlements with Guilt Admission

New rules prevent businesses and individuals from deducting defamation settlement costs and legal fees from their taxes if they admit guilt. This means taxpayer money will no longer indirectly support such payments, potentially impacting how companies handle these types of cases.
Key points
Businesses and individuals cannot deduct defamation settlement costs from taxes if they admit guilt.
Attorney's fees related to such settlements are also not tax-deductible.
These changes apply to payments made in tax years beginning after December 31, 2022.
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Additional Information
Print number: 118_HR_4397
Sponsor: Rep. Boyle, Brendan F. [D-PA-2]
Process start date: 2023-06-30
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

No Taxpayer Bailout for Defamation Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_4397.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-06-30.

What are the main provisions?

Key points include:

  • Businesses and individuals cannot deduct defamation settlement costs from taxes if they admit guilt.
  • Attorney's fees related to such settlements are also not tax-deductible.
  • These changes apply to payments made in tax years beginning after December 31, 2022.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Boyle, Brendan F. [D-PA-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Courts and Law