Survivor Justice Tax Prevention Act

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I want to start out by thanking Chairman Smith and Ranking Member Neal for bringing this important bill to the floor for consideration during Sexual Assault Awareness Month.

As a survivor of sexual assault, I thank Mr. Smucker for teaming up with me to develop this important legislation that supports victims of sexual abuse who so often have no voice.

Mr. Speaker, at its core, this bill is about fairness, dignity, and justice for survivors.

I really don't have to go into detail about the problem that our Nation and, indeed, even this institution have with sexual abuse and assault.

Currently, settlement payments for sexual assault survivors are made on account of personal physical injuries or physical sickness, and they are excluded from gross Federal income and, therefore, not subject to taxation.

We all know that sexual abuse doesn't just cause physical harm. There is indelible mental harm that is caused by sexual assault. Yet, these survivors face challenges proving that sexual assault resulted in physical injuries because they don't have evidence of so-called ``observable bodily harm'' and have been denied the tax exemption.

Our bill, the Survivor Justice Tax Prevention Act, which I am, again, so proud to lead with Representative Lloyd Smucker, addresses this situation by allowing a tax exemption for all harms caused by sexual abuse.

Because the harm is real and lasting, even when it is not visible, we are working to ensure the survivors do not have to be retraumatized by proving so-called observable bodily harm or having to produce deeply personal records or to be abused on a settlement on which they have to pay taxes.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further speakers, and I yield myself the balance of my time to close.

Mr. Speaker, I will start by acknowledging the very passionate words of my cosponsor, Mr. Smucker. I am so pleased that he took this on with such generosity and passion.

Mr. Speaker, we hear all the time about the high-profile civil cases involving sexual abuse. I am thinking about the accounts of trusted gymnast physicians abusing star athletes and the victims of Jeffrey Epstein and many of his associates. We even hear about sexual assault that occurs within our own body, and we have to address that problem.

Let's just take a moment to acknowledge that all sexual abuse does not make the headlines. Every time a survivor comes forward, it takes extraordinary courage in the face of personal risk, scrutiny, and cost.

The Survivor Justice Tax Prevention Act takes a belt-and-suspenders approach to ensure that settlement payments, whether arising from a court judgment, private arbitration or mediation, that are made on account of sexual abuse are not subject to taxation.

Mr. Speaker, I urge my colleagues in the House to support this effort to make the tax code better serve all survivors who receive settlements after prevailing against their abusers by not saddling them with a tax bill or having to fight the IRS.

We need to get this fix passed into law. I am so pleased to be standing here in this Chamber and asking for a vote by suspension of the rules. We need to pass this into law to ensure fair treatment of the tax law, dignity in the face of undue administrative burdens, and justice for survivors who prevail against their abusers.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2347) to amend the Internal Revenue Code of 1986 to exclude from gross income any damages, other than punitive damages, received on account of any sexual acts or sexual contact, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and submit extraneous material on this bill under consideration.

Mr. Speaker, I rise in support of H.R. 2347, the Survivor Justice Tax Prevention Act, bipartisan legislation introduced by Representatives Lloyd Smucker and Gwen Moore.

Survivors of sexual assault face a long road to recovery without having to battle with the IRS over keeping the compensatory damages or settlements that they receive.

Unfortunately, right now, the burden of proof that a sexual assault survivor would have to provide to the IRS, including medical records to prove that they deserve to have their settlement funds excluded from gross income for tax purposes, ignores the fact that such victims often do not have the same observable physical injuries that other victims of assault might have.

Mr. Speaker, this clarification in law is desperately needed. I thank Representatives Smucker and Moore for the true compassion they have shown in fighting to right this wrong for victims of sexual assault.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Pennsylvania (Mr. Smucker), who is the sponsor of this legislation and who has done great bipartisan work in advancing a much-needed solution to support survivors of sexual assault.

Mr. Speaker, it is disturbing to think that the IRS is allowed to tax survivors of sexual assault on the compensatory damages or the settlements that they have received. Such victims should not have to relitigate their case before the agency, adding insult to the injuries that they have already suffered.

I encourage my colleagues to support this great piece of legislation, and I yield back the balance of my time.

Mr. Speaker, I thank Chairman Smith for the time and also for bringing this bill up to the Ways and Means Committee.

I thank Ms. Moore for working with me cosponsoring and introducing this bill, and I thank the members of the Ways and Means Committee who supported this on a unanimous basis because they realize the injustice that is occurring today in the way the IRS is applying the current tax code.

I think the chairman and Ms. Moore both have described it really well. The core problem here, first of all, we believe our current law already says that any victim of physical abuse and any victim of sexual abuse who receives a settlement does not owe tax on that settlement, which makes complete sense. If you think of the trauma that these individuals have gone through, Mr. Speaker, if you think of the work they are doing to rebuild their lives, the last thing we should be doing is taking a portion of that settlement that they so desperately need to rebuild their lives for tax purposes. The law already says that settlement is not taxed.

However, the way the IRS has applied this, they require a proof of observable physical harm like bruises, cuts, or some other apparent evidence of damages to qualify that settlement as tax-free.

As you can imagine, Mr. Speaker, sexual violence doesn't always leave visible scars.

As a result, survivors who have already endured unimaginable trauma can face a second injustice under the current law or the way that the IRS is applying the law, and that is by being taxed on their compensation simply because their suffering doesn't meet some arbitrary standard.

Our bill fixes that problem. It fixes that injustice, and it helps these victims. It does it in a targeted way. It clarifies that payments related to sexual assault automatically are treated as tax exempt. This ensures that survivors are treated fairly and they are treated consistently under the law.

H.R. 2347 is about dignity. It is about clarity, and it is about making sure that survivors receive justice, not a tax bill, from the

Mr. President, I ask unanimous consent that when the Senate completes its business today, it stand adjourned, to then convene for pro forma session only, with no business being conducted, on the following dates and times: Thursday, October 1, at 10:30 a.m.; Monday, October 5, at 4 p.m.; Tuesday, October 6, at 1:30 p.m.; Friday, October 9, at 1:30 p.m.; Tuesday, October 13, at 3:30 p.m.; Thursday, October 15, at 9:30 a.m.; Monday, October 19, at 9 a.m.; Thursday, October 22, at 9 a.m.; Monday, October 26, at 2 p.m.; Thursday, October 29, at 2 p.m.; Monday, November 2, at 4:30 p.m.; and Thursday, November 5, at 10:30 a.m.; further, that when the Senate adjourns on Thursday, November 5, it stand adjourned until 3 p.m. on Monday, November 9; that following the prayer and pledge, the Journal of proceedings be approved to date, the morning hour be deemed expired, the time for the two leaders be reserved for their use later in the day, morning business be closed, and the Senate resume consideration of the motion to proceed to Calendar No. 453, H.R. 2347; further, that notwithstanding rule XXII, at 5:30 p.m., the cloture motion filed during today's session of the Senate ripen.

Mr. President, I understand that there are four bills at the desk due for a second reading en bloc.

In order to place the bills on the calendar under the provisions of rule XIV, I would object to further proceedings en bloc.