,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #aahe  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #aa1 #bjai,mr4  
,leahy introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to disall[ any    
d$uction = punitive damages1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,no ,tax ,write-(fs =      
,corporate ,wrongdo]s ,act4  #b4        
,disall[ance ( d$uction = punitive      
damages  7a7 ,disall[ance ( d$uction    
7#a7 ,9 g5]al ,section #afb7;g7 ( !     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7,a7 by r$esignat+ p>agraphs   
7#a7 & 7#b7 z subp>agraphs 7,a7 & 7,b71 
respectively2  7,b7 by /rik+ ,if &      
ins]t+3  7#a7 ,treble damages ,if  2 &  
7,c7 by add+ at ! end ! foll[+ new      
p>agraph3  7#b7 ,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 action4  4  7#b7      

,con=m+ am5dm5t ,! head+ = section      
#afb7;g7 ( su* ,code is am5d$ by ins]t+ 
or ,punitive ,damages aft] ,laws4  7b7  
,inclusion 9 income ( punitive damages  
paid by insur] or o!rwise  7#a7 ,9 g5]al
 ,"p ,,ii ( sub*apt] ,b ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#ib4 ,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   
7#b7 ,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   
7#c7 ,con=m+ am5dm5t ,! table ( sections
 = "p ,,ii ( sub*apt] ,b ( *apt] #a (   

su* ,code is am5d$ by add+ at ! end !   
foll[+ new item3  ,sec4 #ib4 ,punitive  
damages comp5sat$ by insurance or       
o!rwise4  4  7c7 ,effective ,date ,!    
am5dm5ts made by ?is section %all apply 
to damages paid or incurr$ on or aft] ! 
date ( ! enactm5t ( ?is ,act4