[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4516 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4516

 To amend the Internal Revenue Code of 1986 to modify the treatment of 
        certain payments made with respect to sexual misconduct.


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                    IN THE HOUSE OF REPRESENTATIVES

                            December 1, 2017

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

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to modify the treatment of 
        certain payments made with respect to sexual misconduct.

    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 ``Stop Tax Breaks for Sexual 
Misconduct Act''.

SEC. 2. TREATMENT OF CERTAIN PAYMENTS MADE WITH RESPECT TO SEXUAL 
              MISCONDUCT.

    (a) 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.''.
    (b) 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.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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