,,ii #aac? ,,congress #a/ ,session ,s4 #afed ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,novemb] #e1 #bjac,mr4 ,re$ 7= himself & ,mr4 ,grassley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to d5y tax d$uctions = corporate regulatory violations4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,gov]nm5t ,settlem5t ,transp>5cy & ,re=m ,act4 #b4 ,d5ial ( d$uction = c]ta9 f9es1 p5alties1 & o!r am\nts 7a7 ,9 ,g5]al ,subsection 7f7 ( section #afb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7f7 ,f9es1 ,p5alties1 & ,o!r ,am\nts 7#a7 ,9 g5]al ,except z provid$ 9 ! foll[+ p>agraphs ( ?is subsection1 no d$uction o!rwise all[able %all be all[$ "u ?is *apt] = any am\nt paid or incurr$ 7:e!r by suit1 agreem5t1 or o!rwise7 to1 or at ! direction (1 a gov]nm5t or gov]nm5tal entity 9 relation to ! violation ( any law or ! inve/igation or inquiry by su* gov]nm5t or entity into ! pot5tial violation ( any law4 7#b7 ,exception = am\nts con/itut+ re/itution or paid to come into compliance ) law 7,a7 ,9 g5]al ,p>agraph 7#a7 %all n apply to any am\nt t-- 7i7 ! taxpay] e/abli%es-- 7,i7 con/itutes re/itution 7includ+ rem$iation ( prop]ty7 = damage or h>m :i* 0 or may be caus$ by ! violation ( any law or ! pot5tial violation ( any law1 or 7,,ii7 is paid to come into compliance ) any law :i* 0 violat$ or o!rwise involv$ 9 ! inve/igation or inquiry describ$ 9 p>agraph 7#a71 & 7ii7 is id5tifi$ z re/itution or z an am\nt paid to come into compliance ) su* law1 z ! case may be1 9 ! c\rt ord] or settlem5t agreem5t4 ,! id5tification "u clause 7ii7 alone %all n be suffici5t to make ! e/abli%m5t requir$ "u clause 7i74 7,b7 ,limitation ,subp>agraph 7,a7 %all n apply to any am\nt paid or incurr$ z reimbursem5t to ! gov]nm5t or entity = ! co/s ( any inve/igation or litigation4 7#c7 ,exception = am\nts paid or incurr$ z ! result ( c]ta9 c\rt ord]s ,p>agraph 7#a7 %all n apply to any am\nt paid or incurr$ by reason ( any ord] ( a c\rt 9 a suit 9 :i* no gov]nm5t or gov]nm5tal entity is a p>ty4 7#d7 ,exception = taxes due ,p>agraph 7#a7 %all n apply to any am\nt paid or incurr$ z taxes due4 7#e7 ,treatm5t ( c]ta9 nongov]nm5tal regulatory entities ,= purposes ( ?is subsection1 ! foll[+ nongov]nm5tal entities %all be treat$ z gov]nm5tal entities3 7,a7 ,any nongov]nm5tal entity :i* ex]cises self-regulatory p[]s 7includ+ impos+ sanctions7 9 connection ) a qualifi$ bo>d or ex*ange 7z def9$ 9 section #abef7;g77#g774 7,b7 ,to ! ext5t provid$ 9 regulations1 any nongov]nm5tal entity :i* ex]cises self-regulatory p[]s 7includ+ impos+ sanctions7 z "p ( p]=m+ an ess5tial gov]nm5tal function4 4 7b7 ,effective ,date ,! am5dm5t made by ?is section %all apply to am\nts paid or incurr$ on or aft] ! date ( ! enactm5t ( ?is ,act1 except t su* am5dm5ts %all n apply to am\nts paid or incurr$ "u any b9d+ ord] or agreem5t ent]$ into be=e su* date4 ,su* exception %all n apply to an ord] or agreem5t requir+ c\rt approval unless ! approval 0 obta9$ be=e su* date4 #c4 ,report+ ( d$uctible am\nts 7a7 ,9 g5]al ,subp>t ,b ( "p ,,iii ( sub*apt] ,a ( *apt] #fa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #fjej,w ! foll[+ new section3 #fjej,x4 ,in=mation ) respect to c]ta9 f9es1 p5alties1 & o!r am\nts 7a7 ,requirem5t ( report+ 7#a7 ,9 g5]al ,! appropriate (ficial ( any gov]nm5t or any entity describ$ 9 section #afb7;f77#e7 :i* is involv$ 9 a suit or agreem5t describ$ 9 p>agraph 7#b7 %all make a return 9 su* =m z det]m9$ by ! ,secret>y sett+ =?-- 7,a7 ! am\nt requir$ to be paid z a result ( ! suit or agreem5t to :i* p>agraph 7#a7 ( section #afb7;f7 applies1 7,b7 any am\nt requir$ to be paid z a result ( ! suit or agreem5t :i* con/itutes re/itution or rem$iation ( prop]ty1 & 7,c7 any am\nt requir$ to be paid z a result ( ! suit or agreem5t = ! purpose ( com+ into compliance ) any law :i* 0 violat$ or involv$ 9 ! inve/igation or inquiry4 7#b7 ,suit or agreem5t describ$ 7,a7 ,9 g5]al ,a suit or agreem5t is describ$ 9 ?is p>agraph if-- 7i7 x is-- 7,i7 a suit ) respect to a violation ( any law ov] :i* ! gov]nm5t or entity has au?ority & ) respect to :i* !re has be5 a c\rt ord]1 or 7,,ii7 an agreem5t :i* is ent]$ into ) respect to a violation ( any law ov] :i* ! gov]nm5t or entity has au?ority1 or ) respect to an inve/igation or inquiry by ! gov]nm5t or entity into ! pot5tial violation ( any law ov] :i* su* gov]nm5t or entity has au?ority1 & 7ii7 ! aggregate am\nt involv$ 9 all c\rt ord]s & agreem5ts ) respect to ! violation1 inve/igation1 or inquiry is #fjj or m4 7,b7 ,adju/m5t ( report+ ?re%old ,! ,secret>y may adju/ ! #fjj am\nt 9 subp>agraph 7,a77ii7 z necess>y 9 ord] to ensure ! effici5t adm9i/ration ( ! int]nal rev5ue laws4 7#c7 ,"t ( fil+ ,! return requir$ "u ?is subsection %all be fil$ at ! "t ! agreem5t is ent]$ into1 z det]m9$ by ! ,secret>y4 7b7 ,/atem5ts ,to be furni%$ to individuals involv$ 9 ! settlem5t ,e p]son requir$ to make a return "u subsection 7a7 %all furni% to ea* p]son :o is a p>ty to ! suit or agreem5t a writt5 /atem5t %[+-- 7#a7 ! "n ( ! gov]nm5t or entity1 & 7#b7 ! in=mation suppli$ to ! ,secret>y "u subsection 7a77#a74 ,! writt5 /atem5t requir$ "u ! prec$+ s5t5ce %all be furni%$ to ! p]son at ! same "t ! gov]nm5t or entity provides ! ,secret>y ) ! in=mation requir$ "u subsection 7a74 7c7 ,appropriate (ficial def9$ ,= purposes ( ?is section1 ! t]m appropriate (ficial means ! (fic] or employee hav+ control ( ! suit1 inve/igation1 or inquiry or ! p]son appropriately designat$ = purposes ( ?is section4 4 7b7 ,con=m+ am5dm5t ,! table ( sections = subp>t ,b ( "p ,,iii ( sub*apt] ,a ( *apt] #fa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #fjej,w ! foll[+ new item3 ,sec4 #fjej,x4 ,in=mation ) respect to c]ta9 f9es1 p5alties1 & o!r am\nts4 4 7c7 ,effective ,date ,! am5dm5ts made by ?is section %all apply to am\nts paid or incurr$ on or aft] ! date ( ! enactm5t ( ?is ,act1 except t su* am5dm5ts %all n apply to am\nts paid or incurr$ "u any b9d+ ord] or agreem5t ent]$ into be=e su* date4 ,su* exception %all n apply to an ord] or agreem5t requir+ c\rt approval unless ! approval 0 obta9$ be=e su* date4