CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Rules of Retirement Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
Senators balk at tax break on Boeing settlement
Three lawmakers write to Attorney General Alberto Gonzales questioning $615M DoJ settlement.

NEW YORK (CNNMoney.com) -- Three Republican senators have written to Attorney General Alberto R. Gonzales questioning Boeing's settlement with the Department of Justice that may allow the plane maker to write off the $615 million fine as a tax deduction, according to The New York Times.

Senators Charles Grassley (R-IA), John McCain (R-AZ), and John Warner (R-VA) wrote that allowing Boeing to deduct payments to the government "would be unacceptable."

Boeing was ordered to pay the penalties in order to avoid criminal charges related to the improper hiring of a Pentagon official and the theft of data from Lockheed Martin Corporation, the newspaper reported.

Fines corporations pay to the government to settle charges are not tax deductible, although the parts of the settlement considered compensatory can be.

"If Boeing is able to deduct the settlement, the real penalty could be millions and millions less than advertised. If the Justice Department failed to take into account the tax implications of the $615 million settlement, that's inexcusable," Sen. Grassley said in a statement.

_____________________

Related: The end of Ken Lay's quest Top of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Advertising Practices.
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.