II
119THCONGRESS
1
STSESSION S. 584
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 SENATE OF THE UNITED STATES
FEBRUARY13, 2025
Mrs. G
ILLIBRAND(for herself and Mrs. BLACKBURN) introduced the following
bill; which was read twice and referred to the Committee on Finance
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 back pay, front 13
pay, punitive damages, reimbursement of attorney’s fees, 14
or any payments made in connection with a release of 15
claims or to resolve or settle claims), whether by lump sum 16
or periodic payments, from— 17
‘‘(1) a claim involving such individual as the 18
victim of an alleged nonconsensual sexual act or sex-19
ual contact, as such terms are defined in section 20
2246 of title 18, United States Code, or similar ap-21
plicable Tribal, State, or local law, including when 22
the victim lacks capacity to consent, or 23
‘‘(2) a claim involving conduct that is alleged to 24
constitute sexual harassment of such individual 25
under applicable Federal, Tribal, State, or local law. 26
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‘‘(b) REGULATIONS AND GUIDANCE.—The Secretary 1
shall issue such regulations or other guidance as the Sec-2
retary determines necessary to carry out the purposes of 3
this section, including regulations or other guidance to dis-4
tinguish amounts received in connection with a claim de-5
scribed in subsection (a) from other amounts received as 6
part of a judgment, award, or settlement.’’. 7
(b) S
OCIALSECURITYTAXES.—Section 3121(a) of 8
such Code is amended by striking ‘‘or’’ at the end of para-9
graph (22), by striking the period at the end of paragraph 10
(23) and inserting ‘‘; or’’, and by inserting after para-11
graph (23) the following new paragraph: 12
‘‘(24) any amount received which is excludable 13
from the gross income of the employee under section 14
139J.’’. 15
(c) R
AILROADRETIREMENTTAX.—Section 3231(e) 16
of such Code is amended by adding at the end the fol-17
lowing new paragraph: 18
‘‘(13) A
MOUNTS RECEIVED AS JUDGMENTS , 19
AWARDS, AND SETTLEMENTS WITH RESPECT TO 20
SEXUAL ASSAULT OR SEXUAL HARASSMENT 21
CLAIMS.—The term ‘compensation’ shall not include 22
any amount received which is excludable from the 23
gross income of the employee under section 139J.’’. 24
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(d) UNEMPLOYMENT TAXES.—Section 3306(b) of 1
such Code is amended by striking ‘‘or’’ at the end of para-2
graph (19), by striking the period at the end of paragraph 3
(20) and inserting ‘‘; or’’, and by inserting after para-4
graph (20) the following new paragraph: 5
‘‘(21) any amount received which is excludable 6
from the gross income of the employee under section 7
139J.’’. 8
(e) W
AGEWITHHOLDING.—Section 3401 of such 9
Code is amended by striking ‘‘or’’ at the end of paragraph 10
(22), by striking the period at the end of paragraph (23) 11
and inserting ‘‘, or’’, and by inserting after paragraph 12
(23) the following new paragraph: 13
‘‘(24) any amount received which is excludable 14
from the gross income of the employee under section 15
139J.’’. 16
(f) C
LERICALAMENDMENT.—The table of sections 17
for part III of subchapter B of chapter 1 of the Internal 18
Revenue Code of 1986 is amended by inserting before the 19
item relating to section 140 the following new item: 20
‘‘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 21
this section shall apply to taxable years beginning after 22
the date of the enactment of this Act. 23
Æ
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