H.R. 2347: Survivor Justice Tax Prevention Act

The proposed bill, known as the **Survivor Justice Tax Prevention Act**, aims to amend the Internal Revenue Code of 1986 regarding the taxation of specific damages related to sexual acts or sexual contact. Here’s a detailed summary of what the bill would establish:

Amendment to Tax Code

The bill seeks to change Section 104(a)(2) of the Internal Revenue Code by removing the current wording that allows for the exclusion of only damages received for personal physical injuries or physical sickness. Instead, it will expand the scope to include damages received as a result of:

• Personal physical injuries or physical sickness, or
• Any sexual act or sexual contact.

Clarification on Sexual Acts and Contact

The terms "sexual act" and "sexual contact" are defined according to specific federal legal definitions, ensuring that the inclusion of such damages is precise and unambiguous.

Changes to Substantiation Requirements

• The bill proposes that damages will be considered as resulting from a sexual act or contact if the legal judgment or settlement explicitly states so.
• It also stipulates that the absence of medical records will not nullify the substantiation of the damages related to a sexual act or contact. This means that survivors will not be required to provide medical evidence to prove their claims for tax exclusions.

Effective Date

The amendments made by the bill are intended to apply to damages received from judgments or agreements made after the enactment of this Act. Specifically:

• A judgment is considered made after enactment if the first payment based on that judgment is received after the enactment date.
• An agreement is not considered to be entered into after the enactment if it supersedes or modifies a prior agreement made before that date.

Public Awareness Campaign

The bill also includes a provision for the Secretary of the Treasury to initiate a public awareness program. This program will aim to inform the public about the new tax exclusion for damages received due to sexual acts or contact, collaborating with the Department of Justice’s Office on Violence Against Women and other federal agencies to enhance outreach and education.

Relevant Companies

None found