WASHINGTON, DC – The U.S. House approved legislation introduced by area Congressman Lloyd Smucker. H.R. 2347, the Survivor Justice Tax Prevention Act, would amend the nation’s tax code to ensure survivors of sexual abuse and unwanted, 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 have not sustained a visible injury. Smucker thanked House colleagues for supporting the commonsense bill that ensures survivors of sexual assault receive justice, not a tax bill from the IRS. Smucker added that physical injury doesn’t always reflect the unimaginable trauma survivors endure, and it shouldn’t be required for them to receive the compensation they deserve. He urged the U.S. Senate to take up this meaningful measure and stand with survivors.
REP. LLOYD SMUCKER