No Tax Deductions for Sexual Harasser Buyouts Act

I 116TH CONGRESS 1ST SESSION H. R. 1829 To amend the Internal Revenue Code of 1986 to deny a deduction for severance payments made in connection with sexual misconduct. IN THE HOUSE OF REPRESENTATIVES MARCH 18, 2019 Mrs. CAROLYN B. MALONEY of New York 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 deny a deduction for severance payments made in connection with sexual misconduct. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘No Tax Deductions 4 for Sexual Harasser Buyouts Act’’. 5 SEC. 2. DENIAL OF DEDUCTION FOR SEVERANCE PAY- 6 MENTS MADE IN CONNECTION WITH SEXUAL 7 MISCONDUCT. 8 (a) IN GENERAL.—Section 162 of the Internal Rev- 9 enue Code of 1986 is amended by redesignating subsection 10 VerDate Sep 11 2014 05:00 Apr 02, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1829.IH H1829 kjohnson on DSK79L0C42 with BILLS 2 •HR 1829 IH (s) as subsection (t) and by inserting after subsection (r) 1 the following new subsection: 2 ‘‘(s) DENIAL OF DEDUCTION FOR SEVERANCE PAY- 3 MENTS MADE IN CONNECTION WITH SEXUAL MIS- 4 CONDUCT.—No deduction shall be allowed under this 5 chapter for any amount paid or incurred to any employee 6 in connection with the termination of employment of such 7 employee if a factor in such termination was sexual as- 8 sault, sexual harassment, or any other sexual misconduct 9 by such employee.’’. 10 (b) EFFECTIVE DATE.—The amendments made by 11 this section shall apply to amounts paid or incurred in tax- 12 able years ending after the date of the enactment of this 13 Act. 14 Æ VerDate Sep 11 2014 05:00 Apr 02, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H1829.IH H1829 kjohnson on DSK79L0C42 with BILLS