Bill > HR2347

This bill, titled the Survivor Justice Tax Prevention Act, amends the Internal Revenue Code of 1986 to ensure that damages received by individuals on account of sexual acts or sexual contact are excluded from their gross income, meaning they won't have to pay taxes on this money. This exclusion specifically applies to damages other than punitive damages, which are meant to punish wrongdoers rather than compensate victims. The bill clarifies that this exclusion applies even if there are no medical records or observable injuries related to the sexual act or contact, and it establishes that if a legal decision or agreement explicitly states that damages are for sexual acts or contact, this will be considered credible evidence for tax purposes, making it easier for taxpayers to prove their eligibility for this exclusion. The changes are effective for amounts received from decisions made or agreements entered into after the bill's enactment, with specific rules for how to determine the date for decisions and agreements, and it also mandates a program to inform the public about this tax exclusion.