@jmartin1108 posssibly a clearer explanation of IRC 162(q)
The law denies tax deductions for legal fees and settlement payments in sexual harassment or abuse cases, if there is a nondisclosure agreement. Virtually all settlement agreements include confidentiality or nondisclosure provisions.
so maybe you have to clarify what the case was about and what took place. as a side question why didn't the business insurance or personal liability insurance, if you had them, cover the legal fees? if you had insurance that would reimburse you for the fees but declined to file a claim, regardless of the above, the tax laws deny a deduction.
note that this does not imply we can give you more guidance. we are not lawyers. perhaps ask your lawyer for an opinion.
