Punitive Damages Deduction Disappearing?

June 23, 2010

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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).