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January 01, 2016 Tax-Deductible Corporate Settlements Have Cost the U.S. Billions in Tax Revenue Corporations use big civil legal settlements with federal regulators as a way to deduct billions of dollars from their American tax bills, according to the nonprofit United States Public Interest Research Group. Analyzing the 10 largest settlements by five federal regulators since 2012, the report found that while corporations paid $80 billion to resolve federal charges of wrongdoing, about $48 billion of that was eligible as a deduction. The difference resulted in a loss of $17 billion in tax revenue, or more than the annual amount of estate taxes collected by the Internal Revenue Service. The report says the deductions happen largely because regulators fail to forbid them in the terms of the settlements. Source: Tax Deductions Blunt Impact of Large Corporate Settlements, Report Says

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