AT&T said Friday that tax ramifications related to the newly passed health-care legislation will force it to take a $1 billion non-cash charge in the first quarter.
In papers filed with the U.S. Securities and Exchange Commission, AT&T said the charge stems from changes in the tax laws regarding the Medicare Part D subsidy. AT&T will no longer be able to deduct tax-free subsidies it receives from the government for providing retirees prescription-drug benefits.
“AT&T Inc. intends to take a non-cash charge of approximately $1 billion in the first quarter of 2010 to reflect the impact of this change,” the company said.
Full story: AT&T Taking $1B Charge to Cover Costs of New Health-Care Legislation – FOXBusiness.com