The Survivor Justice Tax Prevention Act (H.R. 2347) was introduced March 25, 2026 in the 119th Congress. The bill would codify the IRS’s current internal policy so survivors of sexual assault and abuse are not taxed on compensatory damages or settlements.
🔹 What the Bill Does
- excludes compensatory damages for sexual assault or sexual contact from gross income
- removes the “physical injury” requirement that has historically triggered taxation
- bars the IRS from requiring medical records to substantiate claims
- allows court orders or settlement agreements to serve as proof
- aligns statutory language with existing IRS internal guidance
🔹 Why It Matters
- survivors avoid being taxed on deeply personal, non‑economic harmseliminates invasive IRS scrutiny into trauma or medical records
- creates uniformity across cases and jurisdictions
- reduces litigation friction around taxability
- closes the gap between IRS practice and the tax code
- 🔹 Legislative Status
- introduced March 25, 2026 by Rep. Lloyd Smucker (R‑PA‑11)
- referred to the House Ways and Means Committee
- bipartisan support expected
- follows similar legislation from the 118th Congress (H.R. 10055)
- prior version advanced by Ways and Means in March 2026
🔹 Closing Frame This bill does something simple but overdue: it brings the tax code in line with the lived reality of survivors. For an area long shaped by technical traps and invasive scrutiny, clarity and dignity are the real reforms.
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