H.R. 9075: Tax the Grift Act

This bill, known as the Tax the Grift Act, proposes changes to the Internal Revenue Code related to civil actions involving the President of the United States and the Internal Revenue Service (IRS). Here’s what the bill aims to do:

Imposition of Tax

The bill introduces a new tax on any payments received by taxpayers from specific settlement funds. This tax would be set at 100% of any amount received from a fund that results from a civil lawsuit filed by the President against the IRS.

Definition of Qualified Settlement Fund Payment

A qualified settlement fund payment is defined in the bill as any funds received by the taxpayer during a taxable year from a fund that was established as a result of a civil action initiated by the President against the IRS.

Exclusions and Tax Treatment

• The bill specifies that while these payments are taxed at a 100% rate, they will not be included as gross income for the taxpayer, meaning that the money received will not count toward the taxpayer's income for tax purposes.
• Additionally, there will be no deductions on income taxes for payments received from these settlement funds.

Administrative Provisions

The bill outlines that any taxes imposed under this new provision will be treated as regular income taxes for administrative purposes. This means the tax will be managed using existing structures within the IRS.

Effective Date

The provisions of this bill would apply to payments received after the date it is enacted into law.

Relevant Companies

None found.