White-collar defense attorneys should be aware of a provision in the recent Tax Cuts and Jobs Act that requires government agencies to report to the Internal Revenue Service civil settlements and criminal judgments and alters what types of costs commonly associated with a white-collar matter or other government enforcement matter are deductible.
In a nutshell, TCJA will make it more expensive on an after-tax basis for corporate clients to investigate and then settle enforcement actions brought by government agencies, including white-collar criminal matters. It also creates a duty on government agencies to both report to the IRS and to the taxpayer the amount of the settlement or order and separately identify the portions of that total amount that are attributable to restitution or remediation of property, or correction of noncompliance; however, the IRS has delayed these information-reporting requirements to no sooner than Jan. 1, 2019.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
