I
119THCONGRESS
1
STSESSION H. R. 1306
To amend the Internal Revenue Code of 1986 to exclude from gross income
any judgments, awards, and settlements with respect to sexual assault
or sexual harassment claims, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY13, 2025
Ms. L
OISFRANKELof Florida (for herself and Ms. TENNEY) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude
from gross income any judgments, awards, and settle-
ments with respect to sexual assault or sexual harass-
ment claims, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Tax Fairness for Sur-4
vivors Act’’. 5
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SEC. 2. EXEMPTING FROM FEDERAL INCOME TAXATION 1
PAYMENTS ALLOCABLE TO SEXUAL ASSAULT 2
OR SEXUAL HARASSMENT CLAIMS. 3
(a) I
NGENERAL.—Part III of subchapter B of chap-4
ter 1 of the Internal Revenue Code of 1986 is amended 5
by inserting before section 140 the following new section: 6
‘‘SEC. 139J. AMOUNTS RECEIVED AS JUDGMENTS, AWARDS, 7
AND SETTLEMENTS WITH RESPECT TO SEX-8
UAL ASSAULT OR SEXUAL HARASSMENT 9
CLAIMS. 10
‘‘(a) I
NGENERAL.—In the case of an individual, 11
gross income shall not include any amount received as a 12
judgment, award, or settlement (including backpay, 13
frontpay, punitive damages, reimbursement of attorney’s 14
fees, or any payments made in connection with a release 15
of claims or to resolve or settle claims) whether by lump 16
sum or periodic payments from— 17
‘‘(1) a claim involving the individual as the vic-18
tim of an alleged nonconsensual sexual act or sexual 19
contact, as such terms are defined in section 2246 20
of title 18, United States Code, or similar applicable 21
Tribal, State, or local law, including when the victim 22
lacks capacity to consent, or 23
‘‘(2) a claim involving conduct that is alleged to 24
constitute sexual harassment of the individual under 25
applicable Federal, Tribal, State, or local law. 26
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‘‘(b) REGULATIONS.—The Secretary shall prescribe 1
such regulations and other guidance as are necessary to 2
carry out the purposes of section, including regulations 3
and other guidance to distinguish amounts received in con-4
nection with a claim described in subsection (a) from other 5
amounts received.’’. 6
(b) S
OCIALSECURITYTAXES.—Section 3121(a) of 7
such Code is amended by striking ‘‘or’’ at the end of para-8
graph (22), by striking the period at the end of paragraph 9
(23) and inserting ‘‘; or’’, and by inserting after para-10
graph (23) the following new paragraph: 11
‘‘(24) any amount received which is excludable 12
from the gross income of the employee under section 13
139J.’’. 14
(c) R
AILROADRETIREMENTTAX.—Section 3231(e) 15
of such Code is amended by adding at the end the fol-16
lowing new paragraph: 17
‘‘(13) A
MOUNTS RECEIVED AS JUDGMENTS , 18
AWARDS, AND SETTLEMENTS WITH RESPECT TO 19
SEXUAL ASSAULT OR SEXUAL HARASSMENT 20
CLAIMS.—The term ‘compensation’ shall not include 21
any amount received which is excludable from the 22
gross income of the employee under section 139J.’’. 23
(d) U
NEMPLOYMENT TAXES.—Section 3306(b) of 24
such Code is amended by striking ‘‘or’’ at the end of para-25
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•HR 1306 IH
graph (19), by striking the period at the end of paragraph 1
(20) and inserting ‘‘, or’’, and by inserting after para-2
graph (20) the following new paragraph: 3
‘‘(21) any amount received which is excludable 4
from the gross income of the employee under section 5
139J.’’. 6
(e) W
AGEWITHHOLDING.—Section 3401 of such 7
Code is amended by striking ‘‘or’’ at the end of paragraph 8
(22), by striking the period at the end of paragraph (23) 9
and inserting ‘‘, or’’, and by inserting after paragraph 10
(23) the following new paragraph: 11
‘‘(24) any amount received which is excludable 12
from the gross income of the employee under section 13
139J.’’. 14
(f) C
LERICALAMENDMENT.—The table of sections 15
for part III of subchapter B of chapter 1 of the Internal 16
Revenue Code of 1986 is amended by inserting before the 17
item relating to section 140 the following new item: 18
‘‘Sec. 139J. Amounts received as judgments, awards, and settlements with re-
spect to sexual assault or sexual harassment claims.’’.
(g) EFFECTIVEDATE.—The amendments made by 19
this section shall apply to taxable years beginning after 20
the date of the enactment of this Act. 21
Æ
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