[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4397 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4397

 To amend the Internal Revenue Code of 1986 to deny tax deductions for 
        certain settlements paid in connection with defamation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 2023

  Mr. Boyle of Pennsylvania introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to deny tax deductions for 
        certain settlements paid in connection with defamation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Taxpayer Bailout for Defamation 
Act''.

SEC. 2. DENIAL OF DEDUCTION FOR CERTAIN SETTLEMENTS PAID IN CONNECTION 
              WITH DEFAMATION.

    (a) Denial of Deduction.--Section 162 of the Internal Revenue Code 
of 1986 is amended by redesignating subsection (s) as subsection (t) 
and by inserting after subsection (r) the following new subsection:
    ``(s) Certain Payments Related to Defamation.--No deduction shall 
be allowed under this chapter for--
            ``(1) any settlement or payment related to defamation if 
        the taxpayer has admitted to guilt or culpability with respect 
        to such settlement or payment, or
            ``(2) attorney's fees related to such settlement or 
        payment.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments in taxable years beginning after December 31, 2022.
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