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US S803

US S803
Government Settlement Transparency and Reform Act


summary

Introduced
04/03/2017
In Committee
04/03/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Government Settlement Transparency and Reform Act This bill amends the Internal Revenue Code to expand provisions relating to the nondeductibility of fines and penalties to prohibit a tax deduction for any amount paid or incurred to, or at the direction of, any governmental entity relating to the violation of any law or the investigation or inquiry into a potential violation of law. The bill exempts from such prohibition: (1) restitution or amounts paid to come into compliance with any law that was violated or otherwise involved in the investigation or inquiry, (2) amounts paid pursuant to a court order in a suit in which the governmental entity was not a party, and (3) amounts paid or incurred as taxes due. The bill also imposes new reporting requirements on governmental entities relating to amounts paid as fines or for restitution.

AI Summary

This bill, the Government Settlement Transparency and Reform Act, amends the Internal Revenue Code to prohibit tax deductions for any amounts paid to a governmental entity related to the violation of a law or the investigation into a potential violation. The bill provides exceptions for amounts constituting restitution or paid to comply with a law, amounts paid pursuant to a court order where the government was not a party, and amounts paid as taxes. The bill also imposes new reporting requirements on governmental entities to disclose information about fines, penalties, and other amounts paid as part of settlements or agreements.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2176-2177) (on 04/03/2017)

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