News & Analysis as of

Tax Deductions Settlement Tax Cuts and Jobs Act

Buckingham, Doolittle & Burroughs, LLC

Is Your Lawsuit Tax Deductible? | How to know when it is, and isn’t, deductible

The costs associated with hiring attorneys, defending a lawsuit, and paying for damages or a settlement can be exorbitant, and will inevitably damage a company’s profitability. The good news is these payments are often tax...more

Skadden, Arps, Slate, Meagher & Flom LLP

Final Regulations Clarify Rules on Deductions for Judgments and Settlement Payments in Government Disputes

On January 12, 2021, the Treasury Department (Treasury) and the IRS released final regulations under Section 162(f) and Section 6050X of Title 26 of the U.S. Code. Section 162(f), as amended by the Tax Cuts and Jobs Act of...more

Skadden, Arps, Slate, Meagher & Flom LLP

Highlights From the Recently Issued Proposed Regulations Under Sections 162(f) and 6050X

On May 13, 2020, the U.S. Treasury Department and Internal Revenue Service issued proposed regulations under Sections 162(f) and 6050X of the Internal Revenue Code regarding the disallowance of deductions for certain amounts...more

Bracewell LLP

New Requirements for Deducting Payments to Governmental Entities

Bracewell LLP on

Section 162(f) of the Internal Revenue Code of 1986 (the Code), as amended by the Tax Cuts and Jobs Act (the TCJA), limits the federal income tax deductibility of certain payments made to a government or governmental entity,...more

Cozen O'Connor

November 13, 2018 Deadline Approaching For Comments On IRS Rules Relating To Reporting And Tax Deductions Of State AG Settlements

Cozen O'Connor on

The process of ironing out settlements of state attorney general (“AG”) investigations and litigations is likely to get more complicated. The 2017 Tax Cuts and Jobs Act (“Act”), among the many other things it did, amended a...more

Jones Day

U.S. Tax Reform Denies Deductions for Confidential Sexual Harassment Settlements

Jones Day on

The recently enacted tax reform bill includes a provision that significantly affects how employers settle sexual harassment claims. Section 13307 of the Tax Cuts and Jobs Act provides that no deduction is permitted for...more

Baker Donelson

Tax Reform Impacts Resolutions of FCA Enforcement Actions

Baker Donelson on

The tax reform law passed in December 2017 establishes requirements and conditions for the tax deductible treatment of payments made to the government to resolve enforcement actions. See 26 U.S.C. § 162(f) (2018); see also...more

McAfee & Taft

Confidential sexual harassment settlement payments no longer tax-deductible

McAfee & Taft on

In a workplace era that may soon be referred to as “Pre-Weinstein,” employers not only could quietly settle sexual harassment claims by including a nondisclosure agreement that virtually assured the matter would be kept...more

Hogan Lovells

Three new acts change tax and employee benefit rules and might require employer action

Hogan Lovells on

Congress and the Administration have been busy recently, enacting not only the "Tax Cuts and Jobs Act" or "TCJA" on December 22, 2017, but also a Continuing Resolution on January 23, 2018, and the Bipartisan Budget Act of...more

Katten Muchin Rosenman LLP

Recent Legislation Limits Settlement Payment Tax Deductions

The recently enacted "Tax Cuts and Jobs Act of 2017" (P.L 115-97) (the "Act") made, among others, significant changes to the rules that govern whether taxpayers can deduct as business expenses certain settlement payments made...more

Bricker Graydon LLP

No tax deduction for sexual harassment payments subject to NDAs

Bricker Graydon LLP on

Parts of the Tax Cuts and Jobs Act that took effect January 1, 2018, have amended Section 162 of the Internal Revenue Code to eliminate tax deductions for settlements, payouts and attorney’s fees “related to sexual harassment...more

Robinson+Cole Manufacturing Law Blog

Government Initiatives in Response to Wave of Harassment Allegations Challenges Manufacturers

Two recent developments, generated from the tidal forces of the #MeToo movement should get manufacturers’ attention. On December 22, 2017, Congress adopted a comprehensive tax reform law. Included in the statute is an...more

Gray Reed

New Tax Law – Impacting Your Small Business and You

Gray Reed on

Agreeing with Benjamin Franklin that there is nothing certain except death and taxes, Sketch Wood and his partner Minnie Brix, owners of Wood & Brix, and their 200 employees are certain that the new tax law will affect them,...more

Seyfarth Shaw LLP

Sexual Harassment Legal Settlements: What Employers Need To Know About The New Tax Act

Seyfarth Shaw LLP on

Seyfarth Synopsis: The new Tax Act prohibits employers from deducting payments to individuals alleging sexual harassment or sexual abuse if the settlement or payment requires the Claimant to execute a nondisclosure agreement....more

Sherman & Howard L.L.C.

#MeToo Impacts Harassment Damages/Taxes

The recently-enacted Tax Cut and Jobs Act (the “Tax Act”) includes an unheralded change to the tax law that will directly affect sexual harassment settlements. As a direct result of the recent highly-publicized cases...more

FordHarrison

Another Employer Deduction Bites the Dust

FordHarrison on

You have probably heard about the many tax deductions that you are losing (or have lost) as a result of the new tax law (known as the Tax Cuts and Jobs Act, or TCJA). But, if you are an employer, one that you may not have...more

Littler

Lawmakers Take Aim: Will #MeToo Curb Nondisclosure or Arbitration Agreements?

Littler on

In 2017, the #MeToo movement highlighted the prevalence of sexual harassment in the workplace, toppling prominent figures in numerous fields. Sexual harassment has been unlawful for decades, of course, yet this vexing problem...more

Snell & Wilmer

To Disclose or Not to Disclose, That Will Be the Question

Snell & Wilmer on

Whether it be a Hollywood mogul, a renowned politician or a formerly respected executive, it is clear from the Me Too and Time’s Up movements that the voices seeking and stands taken to uncover and prevent sexual harassment...more

Cozen O'Connor

Sexual Harassment Lawsuits Just Got Tougher to Settle

Cozen O'Connor on

Just like the infamous line that Congress had to pass the Affordable Care Act to know what was in it, it seems we had to pass the new tax law to find out all of the hidden surprises. One item that received little publicity...more

BCLP

The Tax Cuts and Jobs Act Impacts Settlements of Sexual Harassment and Abuse Claims

BCLP on

The recently enacted Tax Cuts and Jobs Act eliminated a business expense deduction for settlements of sexual harassment and sexual abuse claims that are subject to confidentiality restrictions. Specifically, a “settlement or...more

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