New Tax Bill Bans Tax Deductibility of Confidential Sexual Misconduct Claims Settlements

At the start of the New Year, it has been interesting finding out more about the massive tax legislation that Congress enacted in December. It has been interesting to see the various impacts that the legislation is having on a variety of companies. It has also been interesting to learn more of the details about what Congress actually enacted. For example, here’s a detail about the tax bill that I didn’t previously know about – apparently the tax legislation includes a provision specifying that employers can no longer include as a deduction on their tax returns amounts the employers pay in settlement and defense of sexual misconduct claims, if the settlement is subject to a nondisclosure agreement.   According to a January 18, 2018 post on the Norton Rose Fulbright Global Workplace Insider blog (here), the tax legislation specifies that employers may no longer deduct on their tax returns any “settlement or payment related to sexual harassment or…

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