Baldwin Challenges Opioid Companies ‘Abusive’ Tax Deductions
Letter from senators to IRS warns of deductions for legal expenses due to companies role in opioid epidemic.
Sen. Tammy Baldwin has joined other Senate colleagues in calling on the Internal Revenue Service (IRS) to challenge tax deductions by opioid companies which the senators have called “abusive.” Such deductions could stem from settlements opioid companies have paid because of their role in the opioid epidemic.
Signed by 12 elected officials, including Baldwin, the letter notes that four companies involved in a multi-district opioid litigation plan to claim billions in tax deductions for expenses related to a pending $26 billion settlement. “Similarly, in 2019, a judge ordered one of these companies to pay $572 million to the state of Oklahoma for misleading marketing of its opioid products. Based on this reporting, we are concerned that opioid wholesalers and drug companies may mischaracterize legal settlement expenses in order to claim tax deductions under tax code section 162(f), which allows the deduction of restitution payments.”
The letter continues, “we strongly encourage the IRS to fully enforce the tax code by challenging any erroneous interpretations of these recent regulations that opioid companies may use in an attempt to claim tax deductions for legal settlement expenses.” The letter is the latest in series of actions Baldwin and others have taken against top opioid companies, which have fueled the opioid crisis.
Reprinted with permission of Wisconsin Examiner.
More about the Opioid Crisis
- Attorney General Kaul Announces Consent Judgment with Kroger Over Opioid Crisis - Wisconsin Department of Justice - Mar 21st, 2025
- Baldwin Votes to Strengthen Penalties, Step Up Enforcement Around Deadly Fentanyl - U.S. Sen. Tammy Baldwin - Mar 17th, 2025
- Wisconsin Communities Get Millions From Opioid Settlement as Deaths Decline - Evan Casey - Mar 1st, 2025
- MKE County: County Creates Easy Public Access To Overdose Data - Graham Kilmer - Feb 18th, 2025
- Milwaukee County Executive David Crowley and the Office of Emergency Management Launch New Overdose Dashboard - County Executive David Crowley - Feb 18th, 2025
- Fitzgerald Advances Legislation to Fight Opioid Epidemic - U.S. Rep. Scott Fitzgerald - Feb 6th, 2025
- Milwaukee Is Losing a Generation of Black Men To Drug Crisis - Edgar Mendez and Devin Blake - Jan 31st, 2025
- Milwaukee County’s Overdose Deaths Declined For Second Straight Year - Evan Casey - Jan 27th, 2025
- MKE County: United Community Center Awarded Drug Company Money For Addiction Treatment - Graham Kilmer - Jan 12th, 2025
- DHS Provides Update on Distribution of Latest Opioid Settlement Funds - Wisconsin Department of Health Services - Jan 9th, 2025
Read more about Opioid Crisis here