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
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- MKE County: Another Opioid Settlement Anticipated This Year - Graham Kilmer - May 25th, 2023
- Attorney General Kaul Joins Bipartisan Coalition to Protect Communities from the Dangers of Illicit Xylazine - Wisconsin Department of Justice - May 18th, 2023
- State Awards For $8 Million Opioid Addiction - Danielle Kaeding - Apr 28th, 2023
- On The Front Lines of Overdose Crisis - Graham Kilmer - Apr 25th, 2023
- DHS Awards $8 million for Opioid and Stimulant Treatment Service - Wisconsin Department of Health Services - Apr 25th, 2023
- Baldwin Joins Bipartisan Effort to Combat Fentanyl Crisis - U.S. Sen. Tammy Baldwin - Apr 24th, 2023
- MKE County: Milwaukee Wins $45 Million More From Opioid Companies - Graham Kilmer - Apr 17th, 2023
- MKE County: Rising Overdose Deaths From Drugs Cut With Xylazine In Milwaukee - Graham Kilmer - Apr 5th, 2023
- Milwaukee Health Department Continues Harm Reduction Work Amidst Devastating Fatal Overdose Weekend - City of Milwaukee Health Department - Apr 4th, 2023
Read more about Opioid Crisis here