Harvey Weinstein’s accusers may have to pay a hefty tax bill on settlements

Harvey Weinstein’s accusers may have to pay a hefty tax bill on settlements

While disgraced movie producer Harvey Weinstein worries he’s being “forgotten,” federal tax authorities sure won’t be forgetting their cut from Weinstein’s accusers if a $25 million settlement materializes.

Jury selection was scheduled to start Tuesday in Weinstein’s Manhattan criminal trial, a day after Los Angeles prosecutors charged Weinstein in a separate case on counts including rape. (His lawyers had no immediate comment on the new charges, the Associated Press reported). But while Weinstein faces criminal cases from prosecutors, he’s also facing a range of civil lawsuits from accusers, which is where the potential tax consequences come in.

Weinstein won’t personally pay money under the reported terms of a tentative $25 million settlement to end most of the sexual misconduct lawsuits against him and his former movie studio (the studio’s insurance company will foot the settlement bill, the New York Times reported) — but his accusers will be paying taxes if the lawsuits are similar to other emotional distress and sexual harassment cases.

Source: Market Watch