On Dec. 22, 2017, President Donald Trump signed into law Pub. L. No. 115-97, commonly known as the Tax Cuts and Jobs Act of 2017 (the Act). While the Act makes numerous revisions to the Internal Revenue Code (Code), one notable change is to restrict taxpayers' ability to deduct, as business expenses, payments made in connection with violations of law, including in settlement of government investigations of violations of law. This change potentially affects businesses that are targets in a wide range of government enforcement matters.
Below are five key highlights related to these changes, found in Section 13306 of the Act:
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