Survivor Justice Tax Prevention Act

This bill says that money a person receives from a legal judgment, award, or settlement because of a sexual act or sexual contact should not be counted as income for federal tax purposes, even if the person does not have medical records or visible injuries. Right now, the IRS generally only allows people to avoid paying taxes on this kind of money if there is proof of observable physical harm like bruises or cuts. The bill also says that if a legal judgment or settlement states the money is related to a sexual act or sexual contact, the IRS would have to prove otherwise if it wants to tax that money. Additionally, the bill requires the IRS to make the public aware that this type of money can be excluded from their income for tax purposes.

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