WASHINGTON, DC – The U.S. House Ways and Means Committee advanced Congressman Lloyd Smucker’s bipartisan legislation, H.R. 2347 – the Survivor Justice Tax Prevention Act, during a committee markup. The legislation would amend the nation’s tax code to ensure survivors of sexual abuse and unwanted and illegal sexual contact do not have to pay taxes on settlement income when they prevail legally against their abuser. Under current law, settlement income for personal physical injuries is excluded from federal taxable income, but the IRS generally requires these taxpayers to provide evidence of a visible physical injury prior to allowing tax-free treatment. Such a standard can be particularly burdensome for sexual assault victims who may not have sustained a visible injury. The bill would allow survivors to receive tax-free compensation without the need to demonstrate visible physical injuries. Smucker said survivors have endured unimaginable trauma, and eliminating this unjust tax burden is an important step toward providing them with the peace and fairness they deserve.
REP. LLOYD SMUCKER