Neusch Law

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Posts tagged deduction for payments to government
Civil Penalties by the Colorado Attorney General under the Colorado Consumer Protection Act (CCPA) And Recent Changes to the Federal Tax Code’s Treatment of Deduction for Penalties

Recent changes to the federal tax code by the Tax Cuts and Jobs Act of 2017 (P.L 115-97) have important consequences for businesses’s ability to deduct payments for criminal and civil penalties—and could increase the cost of settlements. Businesses need to be aware of this change before considering settlements with governmental entities. This change could have important implications for many consumer protection actions by state attorneys general, including the Colorado Attorney General’s enforcement of the Colorado Consumer Protection Act (CCPA). This change also implicates payments by businesses to governmental agencies for securities, false claims, and antitrust cases. This article first addresses this important change and then discusses civil penalties by the Colorado Attorney General under the CCPA.

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