To amend the Internal Revenue Code of 1986 to modify the treatment of certain payments made with respect to sexual misconduct.

Stop Tax Breaks for Sexual Misconduct Act This bill amends the Internal Revenue Code to prohibit a tax deduction for trade or business expenses paid or incurred for: (1) liability insurance providing coverage with respect to sexual misconduct by an employee; or (2) damages, settlement costs, or attorney's fees with respect to sexual misconduct by an employee. The bill also excludes from gross income amounts received as damages or settlement payments on account of injuries due to sexual misconduct.