1. Short title This Act may be cited as the Denying Expenditures for False Accusations with Malicious Effect (DEFAME) Act . 2. Disallowance of deduction for certain payments relating to defamation suits (a) In general Section 162 is amended by inserting after subsection (h) the following new subsection: (i) Certain payments relating to defamation lawsuits (1) In general In the case of an applicable corporation, no deduction otherwise allowable shall be allowed under this chapter for any nondeductible defamation payment. (2) Applicable corporation For purposes of this subsection, the term applicable corporation means any corporation for which the gross income for the preceding taxable year exceeds $10,000,000,000. (3) Nondeductible defamation payment For purposes of this subsection— (A) In general The term nondeductible defamation payment means— (i) any applicable defamation suit payment, (ii) any payment for attorneys' fees in connection with a suit for which an applicable defamation suit payment was made, and (iii) so much of any payment of an insurance premium which is in excess of the amount of such premium determined without regard to any suit for which an applicable defamation suit payment was made. (B) Applicable defamation suit payment The term applicable defamation suit payment means any payment— (i) which is made— (I) in connection with a suit for defamation which requires proof of actual malice to succeed on the merits, and (II) pursuant to a settlement or court order, and (ii) which, when aggregated with all other payments described in clause (i) with respect to the same suit, exceeds $500,000,000. . (b) Effective date The amendment made by this section shall apply to payments made after December 31, 2022, in taxable years ending after such date.