118 HR 4397 IH: No Taxpayer Bailout for Defamation Act U.S. House of Representatives 2023-06-30 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 4397IN THE HOUSE OF REPRESENTATIVESJune 30, 2023Mr. Boyle of Pennsylvania introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to deny tax deductions for certain settlements paid in connection with defamation.

1.

Short title

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

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.