Section 1 Short title
This Act may be cited as the “Stop Tax Breaks for Sexual Misconduct Act”.
Stop Tax Breaks for Sexual Misconduct Act
A BILL
To amend the Internal Revenue Code of 1986 to modify the treatment of certain payments made with respect to sexual misconduct.
Sec. 2 Treatment of certain payments made with respect to sexual misconduct
Denial of deduction for certain payments made with respect to sexual misconduct— Section 162(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(4) Certain payments made with respect to sexual misconduct—No deduction shall be allowed under subsection (a) for any amount paid or incurred for—
“(A) liability insurance providing coverage with respect to sexual misconduct by an employee, or
“(B) damages, settlement costs, or attorney’s fees with respect to sexual misconduct by an employee.”
Exclusion from gross income of certain amounts received with respect to sexual misconduct— Section 104(a) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting “; and”, and by inserting after paragraph (6) the following new paragraph:
“(7) amount received as damages or settlement payments on account of injuries due to sexual misconduct.”
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.