[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3530 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3530

 To amend the Internal Revenue Code of 1986 to provide a deduction for 
legal expenses of individuals who bring sexual harassment suits against 
                            their employers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 1996

 Ms. Lofgren introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide a deduction for 
legal expenses of individuals who bring sexual harassment suits against 
                            their employers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sexual Harassment Tax Equity Act of 
1996''.

SEC. 2. DEDUCTION FOR LEGAL EXPENSES OF INDIVIDUALS BRINGING SEXUAL 
              HARASSMENT SUITS AGAINST THEIR EMPLOYERS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 220 
as section 221 and by inserting after section 219 the following new 
section:

``SEC. 220. LEGAL EXPENSES OF INDIVIDUALS BRINGING SEXUAL HARASSMENT 
              SUITS AGAINST THEIR EMPLOYERS.

    ``In the case of an individual, there shall be allowed as a 
deduction the amount paid during the taxable year for reasonable legal 
fees and related expenses (including attorney's fees) with respect to a 
sexual harassment suit by such individual against an employer or former 
employer.''
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes.--Subsection 
(a) of section 62 of such Code is amended by inserting the following 
new paragraph after paragraph (15):
            ``(16) Sexual harassment suit legal costs.--The deduction 
        allowed by section 220.''
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 220 and inserting the following new items:

                              ``Sec. 219. Legal expenses of individuals 
                                        bringing sexual harassment 
                                        suits against their employers.
                              ``Sec. 220. Cross reference.''
    (d) Effective Date.--The amendments made by this section shall 
apply to suits filed after January 1, 1997.
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