,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cdde  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #cj1 #bjac,mr4
 ,wel* 7= himself & ,mr4 ,gutirrez7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to disall[ d$uctions = !  
paym5t ( comp5satory & punitive damages 
to a gov]nm5t1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,/op ,d$uct+ ,damages ,act ( #bjac4  #b4
 ,treatm5t ( paym5ts ( comp5satory &    
punitive damages paid to a gov]nm5t  7a7
 ,9 g5]al ,section #afb7;f7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ to read 
z foll[s3  7f7 ,damages paid to a       
gov]nm5t  7#a7 ,f9es & p5alties ,no     
d$uction %all be all[$ "u subsection 7a7
 = any f9e or simil> p5alty paid to a   
gov]nm5t = ! violation ( any law4  7#b7 
,comp5satory damages ,no d$uction %all  
be all[$ "u ?is *apt] = any am\nt paid  
or incurr$ = comp5satory damages 9      
connection ) any judgm5t 91 or settlem5t

 (1 any action aga9/ a gov]nm5t4  7#c7  
,punitive damages ,no d$uction %all be  
all[$ "u ?is *apt] = any am\nt paid or  
incurr$ = punitive damages 9 connection 
) any judgm5t 91 or settlem5t (1 any    
action aga9/ a gov]nm5t4 ,?is p>agraph  
%all n apply to punitive damages        
describ$ 9 section #ajd7;c74  4  7b7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to damages paid or   
incurr$ aft] ,octob] #cj1 #bjac4  #c4   
,inclusion 9 income ( punitive damages  
paid by insur] or o!rwise  7a7 ,9 g5]al 
,"p ,,ii ( sub*apt] ,b ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#ia4 ,punitive damages comp5sat$ by     
insurance or o!rwise ,gross income %all 
include any am\nt paid to or on behalf (
 a taxpay] z insurance or o!rwise by    
reason ( ! taxpay]'s liability 7or      
agreem5t7 to pay punitive damages4  4   
7b7 ,report+ requirem5ts ,section #fjda 
( su* ,code is am5d$ by add+ at ! end ! 
foll[+ new subsection3  7h7 ,section ,to

 ,apply to punitive damages comp5sation 
,?is section %all apply to paym5ts by a 
p]son to or on behalf ( ano!r p]son z   
insurance or o!rwise by reason ( ! o!r  
p]son's liability 7or agreem5t7 to pay  
punitive damages4  4  7c7 ,con=m+       
am5dm5t ,! table ( sections = "p ,,ii ( 
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #ia4 ,punitive damages     
comp5sat$ by insurance or o!rwise4  4   
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to damages paid  
or incurr$ aft] ,octob] #cj1 #bjac4