What a yes vote endorsed
Survivor Justice Tax Prevention Act
What this does
The bill amends the Internal Revenue Code so that money damages, other than punitive damages, received on account of a sexual act or sexual contact are excluded from gross income and are not taxed. This exclusion applies whether or not there are medical records or observable injuries of the act or contact. If a court decision or settlement states that the damages are on account of a sexual act or contact, that statement is treated as credible evidence and shifts the burden to the government on that question. The change applies only going forward, to amounts received under decisions made and agreements entered into after enactment, and a revised version of a pre-enactment agreement does not qualify. Treasury must also run a program to make the public aware of the exclusion.
Passed the House by voice vote
How we know · 6 sourced claims
- The bill amends the Internal Revenue Code to exclude from gross income money damages, other than punitive damages, received on account of a sexual act or sexual contact.Source: Sec. 2(a)
- The exclusion applies whether or not there are medical records or observable injuries of the act or contact.Source: Sec. 2(a)
- If a decision or agreement states that damages are on account of a sexual act or contact, that statement is treated as credible evidence and the taxpayer is treated as meeting the requirements of section 7491(a)(2) on that issue.Source: Sec. 2(b)
- The change applies only to amounts received under decisions made and agreements entered into after enactment, and an agreement that replaces, supersedes, or revises a pre-enactment agreement does not qualify.Source: Sec. 2(c)
- Treasury, in consultation with the Justice Department Office on Violence Against Women, must conduct a program to promote public awareness of the exclusion.Source: Sec. 2(e)
- The measure is a single-subject bill setting the federal tax treatment of damages for a sexual act or sexual contact.Source: Sec. 1, Sec. 2