Meeks, Moore, and Smucker Introduce Bipartisan Survivor Justice Tax Prevention Act

WASHINGTON, D.C. – U.S. Reps. Gregory W. Meeks (D-NY-05), Gwen Moore (D-WI-4) and Lloyd Smucker (R-PA-11) introduced the Survivor Justice Tax Prevention Act. This legislation will 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. The Members introduced this legislation during Domestic Violence Awareness Month.

Under current law and practice of the Internal Revenue Service (IRS), payments for damages awarded on account of personal physical injuries or physical sickness are exempt from gross income for federal income tax purposes. In implementing the requirement of a “physical injury” the IRS has imposed a standard that the victim must show visible physical harm for the settlement to qualify for tax-free treatment. The observable harm standard can be especially difficult to meet and unfair in circumstances of sexual assault or sexual contact where physical injuries may not be visible or have healed. 

“Survivors of sexual assault have already been through too much, physically and emotionally,” Rep. Meeks said. “The last thing they should have to do is retraumatize themselves by displaying physical injury sustained from the assault in order to receive the full settlement they are entitled to. I am proud to have worked with Representatives Moore and Smucker to ensure that survivors are no longer held to the burdensome observable harm standard.”

“This legislation provides certainty for survivors of sexual assault and ensures that monetary settlements are exempt from federal income tax,” Rep. Smucker said. “I encourage my colleagues to stand with survivors by supporting this narrowly tailored legislation. I want to thank Reps. Gwen Moore and Gregory Meeks for joining me in introducing this legislation.” 

“Right now, sexual abuse survivors who prevail in legal actions against their abusers must pay federal tax on monetary awards they receive unless they prove to the IRS they suffered physical harm,” said Rep. Moore said. “I am honored to partner with Representatives Smucker and Meeks to remove the burdensome and unfair requirement on survivors of sexual abuse and highlight our joint work during Domestic Violence Awareness Month.” 

To read the full bill text, visit here. 

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