June 23, 2010
The U.S. Senate recently voted to amend the American Jobs and Closing Tax Loopholes Act of 2010 to include a provision making the payment of punitive damages a non-deductible expense. To view the text of the amendment and comments surrounding its introduction, try the following search in the Congressional Record (CR) database: “closing tax loopholes act” & punitive exemplary /2 damage.
To find recent media coverage of the amendment and the deductibility of punitive damages in general, try a search in ALLNEWSPLUS for: deduct! /s punitive exemplary /2 damage & da(2010).
For some discussion on the history of the deduction, search the TP-ALL database for: pr,ti(deduct! /5 punitive exemplary /2 damage).