Thank you for sharing!

Your article was successfully shared with the contacts you provided.
U.S. Treasury Department in Washington. Credit: Mike Scarcella/ALM

The tax proposal on Capitol Hill takes aim at the recent wave of workplace scandals with a provision that would prevent businesses from deducting settlements, payouts and legal fees related to sexual harassment or abuse allegations that are part of any nondisclosure agreement.

Such payments are deductible under current tax law. The proposal would make it more expensive for an employer to use a settlement, which could be written off as a business expense, as a way to address a sexual harassment or abuse case. Such settlements came under the spotlight amid high-profile cases of harassment, including Fox News host Bill O’Reilly and Hollywood producer Harvey Weinstein.

The amendment, filed by Sen. Robert Menendez, D-New Jersey, is part of a response from legislators to sexual harassment stories that have exposed powerful men and made companies rethink their policies to prevent such misconduct.

Brew a Pot of Coffee, This Big Law Tax Attorney Is Burning the Midnight Oil

The U.S. House was set to vote Wednesday after Senate action earlier in the day. The Senate version still included the provision ending deductions for sexual harassment settlements and legal fees.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.