Tax
Sep. 12, 2018
Senators pushing to fix sexual harassment tax misstep
It doesn’t appear that anyone worried too much about sexual harassment plaintiffs. In an employment context — and most such claims occur in the context of employment — the plaintiff is normally entitled to an “above-the-line” deduction for legal fees.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
The tax reform law passed in December 2017 prohibits tax deductions for hush money settlements in sexual harassment cases. Labelled a "Weinstein Tax," it prevents individuals and companies from writing off the settlements and the associated legal fees. The law seemed uncontroversial at a time when hush money payers were being lambasted. Congress said no more tax deductions. The biggest reach was saying no tax deduction for the legal fees, since legal fees were busines...
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