Survivor Justice Tax Prevention Act
- Bill Number
- H.R. 2347
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Passed House
- Latest Action
- 2026-04-28: Received in the Senate.
- Last Updated
- 2026-06-11T23:41:32Z
AI-Generated Summary
Purpose
The Survivor Justice Tax Prevention Act (H.R. 2347) aims to prevent survivors of sexual acts or sexual contact from paying federal income taxes on compensatory damages they receive, making such payments tax-free to provide financial relief.
Key Provisions
- Tax Exclusion: Amends Internal Revenue Code (IRC) Section 104(a)(2) to exclude from gross income any damages (except punitive damages, which punish wrongdoing) received due to:
- Personal physical injuries or sickness (existing rule), or
- "Sexual acts" or "sexual contact," as defined in federal criminal law (18 U.S.C. § 2246). These terms cover intentional touching or penetration of sexual areas, even without medical records or visible injuries.
- Burden of Proof: If a court decision or settlement agreement states damages are for sexual acts/contact, this is treated as strong evidence in tax disputes. The claimant (taxpayer) is presumed to meet the burden of proof under IRC § 7491(a).
- Effective Date:
- Applies to payments from decisions or agreements after enactment.
- A decision counts if the first payment is after enactment.
- Revisions to pre-enactment agreements do not trigger the new rule.
- No Inference Clause: The change does not imply that physical injuries without records were previously taxable or non-taxable.
- Public Awareness: The Treasury Secretary, with input from the Department of Justice's Office on Violence Against Women and others, must run a program to inform the public about the new exclusion.
Significant Changes to Existing Law
- Expands IRC § 104(a)(2): Previously limited to "personal physical injuries or physical sickness." Now explicitly includes sexual acts/contact, removing requirements for proof of physical harm.
- Shifts Burden in Tax Court: Eases proof for claimants by treating settlement language as presumptive evidence, favoring survivors over the IRS in disputes.
Potential Impacts
- On Citizens: Survivors of sexual misconduct receive full compensatory awards without tax liability, potentially increasing settlement values and encouraging claims.
- On Government Agencies: IRS must adjust tax processing and audits; Treasury funds and runs awareness campaigns; minimal international effects.
- Broader Effects: Reduces financial barriers for victims pursuing justice, but excludes punitive damages (already non-taxable in many cases).
Main Stakeholders Affected
- Primary: Survivors of sexual acts or contact (e.g., victims of assault or harassment).
- Secondary: Taxpayers filing claims, lawyers handling settlements, IRS (enforcement/audits), Treasury and DOJ (awareness efforts).
- Others: Courts issuing decisions, employers/insurers paying settlements.
Notable Legal, Constitutional, or Political Implications
- Legal: Clarifies tax treatment post-high-profile cases (e.g., #MeToo settlements), standardizes exclusions, and limits IRS challenges via burden shift—potentially reducing litigation.
- Constitutional: No direct challenges noted; aligns with equal protection by aiding a vulnerable group without infringing rights.
- Political: Passed House in 119th Congress (2026); promotes victim support, but could raise revenue concerns if more claims qualify for exclusions. No retroactivity preserves settled expectations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Moore, Gwen [D-WI-4], Rep. Meeks, Gregory W. [D-NY-5], Rep. Tenney, Claudia [R-NY-24]
Recent Actions
- 2026-04-28: Received in the Senate.
- 2026-04-27: Motion to reconsider laid on the table Agreed to without objection.
- 2026-04-27: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3110)
- 2026-04-27: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3110)
- 2026-04-27: DEBATE - The House proceeded with forty minutes of debate on H.R. 2347.
- 2026-04-27: Considered under suspension of the rules. (consideration: CR H3110-3111)
- 2026-04-27: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 2026-04-09: Placed on the Union Calendar, Calendar No. 519.
- 2026-04-09: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-599.
- 2026-04-09: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-599.
- 2026-03-25: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 41 - 0.
- 2026-03-25: Committee Consideration and Mark-up Session Held
- 2025-03-25: Referred to the House Committee on Ways and Means.
- 2025-03-25: Introduced in House
- 2025-03-25: Introduced in House
Bill Versions
- Survivor Justice Tax Prevention Act — issued 2026-04-27 — PDF (6 pages)
- Survivor Justice Tax Prevention Act — issued 2025-03-25 — PDF (4 pages)
- Survivor Justice Tax Prevention Act — issued 2026-04-09 — PDF (6 pages)