No deduction for certain payments made in sexual harassment or sexual abuse cases. For amounts paid or incurred after December 22, 2017, new section 162(q) provides that no deduction is allowed under section 162 for any settlement or payment related to sexual harassment or sexual abuse if it is subject to a nondisclosure agreement. In addition, attorney’s fees related to such a settlement or payment are not allowed as a deduction. Section 162(q) does not preclude the recipient of such settlements or payments from deducting related attorney’s fees, however, if otherwise deductible - see FAQ.
