Bill > S467

This bill amends the Internal Revenue Code to allow taxpayers to claim an "above-the-line" tax deduction for attorney fees and court costs related to consumer protection violation claims. An above-the-line deduction means taxpayers can reduce their taxable income before calculating their adjusted gross income, which is generally more beneficial than an itemized deduction. The bill defines "consumer protection violation" extremely broadly, encompassing violations under numerous federal laws related to consumer rights, including laws governing real estate transactions, lending, credit reporting, debt collection, product safety, warranties, and more. The definition also includes federal, state, and local laws that protect consumers from unfair or deceptive trade practices. Specifically, the bill allows taxpayers to deduct attorney fees and court costs associated with settlements or judgments stemming from these consumer protection claims. The amendments would apply to attorney fees and court costs paid during taxable years ending after the date of the Act's enactment. The bill's title, the "End Double Taxation of Successful Consumer Claims Act," suggests its intent is to prevent consumers from being taxed on money spent pursuing legal remedies for consumer protection violations.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/467/all-info