Section 1 Short title
This Act may be cited as the “No Taxpayer Bailout for Defamation Act”.
No Taxpayer Bailout for Defamation Act
A BILL
To amend the Internal Revenue Code of 1986 to deny tax deductions for certain settlements paid in connection with defamation.
Sec. 2 Denial of deduction for certain settlements paid in connection with defamation
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.”
Effective date— The amendment made by this section shall apply to payments in taxable years beginning after December 31, 2022.