Smucker Legislation Supporting Sexual Assault Victims Advanced by Ways and Means Committee

WASHINGTON - Today, the Ways and Means Committee advanced Rep. Lloyd Smucker's bipartisan legislation, H.R. 2347, the Survivor Justice Tax Prevention Act, during a committee markup.

The Survivor Justice Tax Prevention Act would 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.

Under current law, settlement income for personal physical injuries is excluded from federal taxable income, but the IRS generally requires these taxpayers to provide evidence of a visible physical injury prior to allowing tax-free treatment. This standard can be particularly burdensome for sexual assault victims who have not sustained a visible injury.

This bill would allow survivors to receive tax-free compensation without the need to demonstrate visible physical injuries.

"I want to thank my Ways and Means colleagues for advancing this bill and for standing with survivors of sexual assault," said Rep. Smucker (PA-11)."This legislation brings greater clarity and fairness to our tax code. Survivors have endured unimaginable trauma, and eliminating this unjust tax burden is an important step toward providing them with the peace and fairness they deserve. I look forward to continuing to work with my colleagues to deliver justice for these survivors."

"The Survivor Justice Tax Prevention Act is a much-needed change in tax policy to ensure survivors of sexual assault and sexual abuse are able to exclude damages or settlements when they file taxes,"said Ways and Means Committee Chairman Jason Smith (MO-08). "Representative Smucker has been a champion of this effort to provide relief for those who have already had to endure a horrendous crime. I commend him for his compassion and for his work to build bipartisan support for survivors and end unnecessary and unreasonable IRS red tape."

H.R. 2347, the Survivor Justice Tax Prevention Act, is co-sponsored by Rep. Gwen Moore (WI-04), Rep. Gregory Meeks (NY-05), and Rep. Claudia Tenney (NY-24).