Survivor Justice Tax Prevention Act
Last recorded step: House, Jul 14, 2026.
Nothing scheduled on the calendars we hold.
This bill would exclude damages received for sexual acts or contact from federal income tax, regardless of observable physical injury.
This summary may be out of date
Last regenerated The bill has had legislative action since.
What it does
This bill would exclude damages received from legal judgments or settlements related to sexual acts or sexual contact from an individual's gross income for federal tax purposes. It proposes that these damages be tax-exempt regardless of whether there are medical records or observable physical injuries, and it places the burden of proof on the IRS if the agency contests the characterization of such payments in court. Additionally, the bill would require the IRS to conduct public awareness efforts regarding this tax exclusion.
Who is affected
This bill affects individuals who receive damages, awards, or settlements resulting from claims of sexual acts or sexual contact. It also impacts the Internal Revenue Service (IRS), which would be required to promote public awareness of these tax exclusions and would bear the burden of proof in court proceedings regarding the characterization of such damages.
Key provisions
- Tax exclusion for sexual act or contact damages. Excludes from gross income any non-punitive damages received from a judgment, award, or settlement resulting from a sexual act or sexual contact. This exclusion applies regardless of whether there are medical records or observable physical injuries associated with the act or contact.
- Burden of proof for damage characterization. Establishes that if a legal settlement or judgment identifies damages as being due to a sexual act or sexual contact, the Internal Revenue Service carries the burden of proving otherwise in court proceedings regarding tax liability.
- Public awareness requirement. Directs the Internal Revenue Service to promote public awareness regarding the tax-exempt status of damages related to sexual acts or sexual contact.
Fiscal impact
- H.R. 2347, Survivor Justice Tax Prevention Act· As reported by the House Committee on Ways and Means on April 9, 2026
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
The bill modifies the application of federal tax law regarding the exclusion of damages from gross income, which currently requires observable bodily harm to qualify as a personal physical injury. It expands this exclusion to include damages from sexual acts or conduct regardless of medical records or observable injury and shifts the burden of proof to the Internal Revenue Service in related court proceedings.
Stated purpose
The bill seeks to ensure that damages received from legal judgments or settlements related to sexual acts or contact are excluded from federal gross income, regardless of whether there is evidence of observable physical injury. It also shifts the burden of proof to the IRS in related court proceedings and requires the agency to promote public awareness of this tax exclusion.