A provision in the new tax law intended to limit deductibility by companies of confidential  payments for sexual misconduct settlements may inadvertently harm the victims it was intended to help.

The new section reads as follows: “No deduction shall be allowed under this chapter for (1) any settlement or payment related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement, or (2) attorney’s fees related to such a settlement or payment.”