Survivor Justice Tax Prevention Act - Amends IRS Code Section 104(a)(2) Exclusion for Sexual Act Damages

N S AMENDMENT IN THEOATURE OF A GUBSTITUTE H.R. 2347 TO M. S M FFERED BYRMITH OF ISSOURI

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE. 1

This Act may be cited as the ''Survivor Justice Tax 2 Prevention Act''. 3

SEC. 2. EXCLUSION FROM GROSS INCOME OF ANY DAM-4 AGES, OTHER THAN PUNITIVE DAMAGES, RE-5 CEIVED ON ACCOUNT OF SEXUAL ACTS OR 6 SEXUAL CONTACT. 7

.--Section 104(a)(2) of the Internal 8(a) INENERAL Revenue Code of 1986 is amended by striking ''on account 9 of personal physical injuries or physical sickness;'' and in-10 serting ''on account of-- 11 ''(A) personal physical injuries or physical 12 sickness, or 13 ''(B) any sexual act (as defined in para-14 graph (2) of section 2246 of title 18, United 15 States Code, as in effect on the date of the en-16 actment of this subparagraph) or sexual contact 17 (as defined in paragraph (3) of such section, as 18

so in effect), whether or not there are medical 1 records or observable injuries of such act or 2 contact;''. 3 -4(b) B P W R WURDEN OF ROOF ITH ESPECT TO HETH -5 A S A SWERDAMAGES CRE ON SCCOUNT OF DEXUAL ACT OR CEX .--Section 104 of such Code is amended by 6UALONTACT redesignating subsection (d) as subsection (e) and by in-7 serting after subsection (c) the following new subsection: 8 9''(d) B P W RURDEN OF ROOF ITH ESPECT TO 10 A A S AHETHERAMAGES RE ON CCOUNT OF EXUAL CT .--For purposes of subsection 11OREXUAL ONTACT (a)(2), if a decision or agreement states that any damages 12 received therefrom are on account of a sexual act or sexual 13 contact referred to in subsection (a)(2)(B)-- 14 ''(1) such statement shall be treated as credible 15 evidence that such damages are so on account for 16 purposes of section 7491(a), and 17 ''(2) the taxpayer shall be treated as having 18 met the requirements of section 7491(a)(2) with re-19 spect to the issue of whether such damages are so 20 on account.''. 21 .-- 22(c) E DFFECTIVE ATE .--The amendments made by 23(1) I N GENERAL this section shall apply to amounts received pursuant 24

to decisions made, and agreements entered into, 1 after the date of the enactment of this Act. 2 .--For pur-3 (2) S PECIAL RULE FOR DECISIONS poses of paragraph (1), a decision shall be treated 4 as made after the date of the enactment of this Act 5 if the first payment pursuant to such decision is re-6 ceived after such date. 7 .--For 8 (3) S PECIAL RULE FOR AGREEMENTS purposes of paragraph (1), an agreement shall not 9 be treated as entered into after the date of the en-10 actment of this Act if such agreement replaces, su-11 persedes, or revises an agreement entered into on or 12 before such date. 13 14(d) N W R E O NFERENCE ITH ESPECT TO FFECT OF -15 O I DEDICAL ECORDS OR BSERVABLE NJURIES ON E 16 W R P PMTERMINATIONS IITH RESPECT TO IERSONAL PHYSICAL .--No inference may be 17 SNJURIES OR HYSICAL ICKNESS drawn from the amendment made by subsection (a) (or 18 from section 104(a)(2)(B) of the Internal Revenue Code 19 of 1986, as amended by subsection (a)) with respect to 20 whether the term ''personal physical injuries or physical 21 sickness'' as used in section 104(a)(2) of such Code in-22 cludes injuries or sickness with respect to which there are 23 no medical records or observable injuries. 24

-1(e) PPAEROMOTION OFUBLICWARENESS OFXCLU .--The Secretary of the Treasury (or the Secretary's 2SION delegate), in consultation with the Department of Justice 3 Office on Violence Against Women and other relevant 4 Federal agencies, shall conduct a program to promote 5 public awareness of the exclusion from gross income pro-6 vided by section 104(a)(2)(B) of the Internal Revenue 7 Code of 1986, as amended by this section. 8