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A deduction big enough to litigate
October 27, 2008
Wellpoint, the insurance company, lost a $113,837,500 deduction today in Tax Court. They deducted payments to some states to settle a lawsuits, expenses the court ruled were capital in nature and therefore non-deductible. They also lost an $800,000+ deduction for related legal expenses.
If they made the payments because they had an opinion letter assuring that they could get a deduction, oops.
Cite: Wellpoint, Inc., T.C. Memo 2008-236. If that link doesn't work, try this one.
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Comments
If they were for profit, then could they deduct the amount as a contribution to a non-profit organization?
Posted by: Dustin | October 27, 2008 4:34 PM