Survivor Justice Tax Prevention Act
Sponsored By: Representative Smucker, Lloyd [R-PA-11]
Passed House
Summary
Makes damages for sexual acts or sexual contact tax-free by expanding the tax exclusion that covers physical‑injury awards. It also creates an easier proof rule when a court decision or settlement says the award is for a sexual act or sexual contact.
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- Survivors: Damages received on account of sexual acts or sexual contact are excluded from gross income like physical‑injury awards, even if there are no medical records or observable injuries.
- Evidence and timing: A decision or agreement that states damages are for a sexual act or sexual contact is treated as credible evidence for the taxpayer under Section 7491(a). The exclusion applies only to decisions and agreements made after enactment; a decision counts as after enactment if its first payment occurs after enactment, and an agreement that merely replaces an agreement entered on or before enactment does not qualify.
- Outreach: The Secretary of the Treasury, in consultation with the Department of Justice Office on Violence Against Women and other federal agencies, must run a program to promote public awareness of the exclusion.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Tax-free damages for sexual assault survivors
If enacted, money you receive as damages for a sexual act or sexual contact would not be taxed. Punitive damages would still be taxed. This would apply even if there are no medical records or visible injuries. The current tax break for damages from physical injuries or sickness would remain.
Treasury outreach on this tax relief
The Treasury Department would run a public awareness program about this tax exclusion. It would work with the Justice Department’s Office on Violence Against Women and other agencies. The goal would be to inform survivors, tax preparers, and advocates about who can exclude these damages and how.
Easier IRS proof and timing for survivors
If your settlement or court decision states the damages are for a sexual act or sexual contact, that would count as credible evidence with the IRS. You would be treated as meeting the burden of proof on that point in an audit or appeal. The changes would apply only to amounts from decisions made and agreements signed after enactment. A decision would count as after enactment if the first payment comes after enactment. An agreement would not count as after enactment if it replaces or revises one signed on or before enactment.
Sponsors & CoSponsors
Sponsor
Smucker, Lloyd [R-PA-11]
PA • R
Cosponsors
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 3/25/2025
Rep. Meeks, Gregory W. [D-NY-5]
NY • D
Sponsored 6/27/2025
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 12/3/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov