By Diana Wollman, Rebecca Reeb and Katie Sheridan (February 28, 2018, 12:21 PM EST) -- Investigations into potential violations of U.S. and non-U.S. securities laws are often resolved by a settlement requiring the business to make one or more large settlement payments. We have seen settlements paid to the U.S. Department of Justice, the U.S. Securities and Exchange Commission, other U.S. and non-U.S. regulators, and private plaintiffs. An important question is whether the payment will be deductible for tax purposes. Since 1969, U.S. tax law has denied a deduction for "any fine or similar penalty paid to a government for the violation of any law."[1] This limitation was significantly changed by the U.S. tax reform law enacted in December 2017, known as the Tax Cuts and Jobs Act. These changes, which had been proposed in Congress over 30 times since 2003 but not enacted until now, respond in part to disputes the IRS has had with taxpayers in the past....