Tax Cuts And Jobs Act Limits Business Expense Deduction For Settlement of Sexual Harassment Claims

By Trey Cooper

Before settling a claim of sexual harassment or sexual abuse, Employers should consider a little discussed provision of the newly passed Tax Cuts and Jobs Acts which could affect their taxable income. Whether a settlement agreement or payment made in connection with a sexual harassment or sexual abuse claim is deductible will depend on whether the settlement or payment is subject to a nondisclosure agreement. [More]