Fresenius Opens Door To FCA Tax Breaks

Law360, New York (August 25, 2014, 10:05 AM EDT) -- On Aug. 13, 2014, the First Circuit rejected the United States' request to deny Fresenius Medical Care Holdings Inc. from deducting a portion of a settlement payment to settle civil claims brought under the False Claims Act. Fresenius Medical Care Holdings Inc. v. United States, 114 A.F.T.R. 2d 2014 - ___ (1st Cir. 2014) In affirming the Massachusetts federal judge's decision to permit the tax deduction, the First Circuit disagreed with the Ninth Circuit's decision in Talley Industries Inc. v. Commissioner, 116 F.3d 382 (9th Cir. 1997), and held that a court may consider factors aside from the presence or absence of a tax agreement between the government and the settling party in determining the tax treatment of a False Claims Act civil settlement....

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