Fact Sheet: End Tax Write-Offs for Wrongdoing

Explains how taxpayers foot the bill when companies that commit misdeeds against the public write off the costs as a tax deduction.


Maryland PIRG

Imagine getting a tax break for violating the law, committing fraud or mistreating consumers. Unfortunately, it has happened all too often. When companies have been charged with violating laws and regulatory standards—for example, by defrauding Medicare, discriminating against customers or distorting financial markets—many have been able to write off the cost of their financial settlements on their taxes.