Misplaced word in tax law could cost victims of sexual harassment

Misplaced word in tax law could cost victims of sexual harassment
© Greg Nash

A misplaced word in the new tax law could hurt victims of sexual harassment by preventing them from being able to deduct legal expenses, Bloomberg reports.

The news outlet said Republicans are considering a fix to the law to correct the unintentional error, but there are worries that the correction would not pass through a gridlocked Congress where lawmakers have one eye on this year's midterm elections. 

The tax law eliminates the deduction companies were once able to take when settling sexual harassment cases and nondisclosure agreements.

But a misplaced word, according to Bloomberg, means that victims of sexual harassment could also lose their ability to deduct legal expenses. 


Bloomberg said attorneys for people involved in workplace cases are "buzzing" about how the law's ambiguity could hurt their clients. 

Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchTrump administration backs Oracle in Supreme Court battle against Google Timeline: Trump and Romney's rocky relationship Key Republicans say Biden can break Washington gridlock MORE (R-Utah) is meeting with members to address concerns with the tax law and examine the need for technical corrections, Bloomberg reported.

“With pro-growth tax reform on the books, Chairman Hatch is continuing to work with the administration to ensure a proper and seamless implementation of new policies," a spokesperson for the senator said. "As this process moves forward, he’ll continue to meet with members, taxpayers and other stakeholders to address any concerns with the new law and examine potential technical corrections, should they be needed.”

Naomi Jagoda contributed.