Survivor Justice Tax Prevention Act

Right now, money people receive from lawsuits or settlements for physical injuries is not taxed, but the IRS usually requires proof of visible injuries like bruises or cuts. This bill says that money received from lawsuits or settlements related to sexual acts or sexual contact would not be taxed, even if there are no medical records or visible injuries. If the lawsuit or settlement paperwork says the money is for a sexual act or sexual contact, the IRS would have to prove otherwise if it wants to challenge that in court. The bill also requires the IRS to let the public know about this tax rule.

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