Tax-law typo risks bankrupting #MeToo victims

For example, in a $100,000 settlement, costs and fees might take $45,000, with $55,000 going to the victim. Without the deduction, the victim would pay taxes on the entire $100,000, which may mean a tax bill equal to or larger than their payout, she said. Defendants this year have said they aren’t willing to add additional money to compensate for the potential added tax penalty, Harrison said.