Congresswoman Gwen Moore Celebrates Committee Passage of Her Survivor Justice Tax Prevention Act

Congresswoman Gwen Moore Celebrates Committee Passage of Her Survivor Justice Tax Prevention Act

Today, the Ways and Means Committee marked up several bills, including Representatives Moore and Smucker's legislation, the Survivor Justice Tax Prevention Act (H.R. 2347). This legislation would amend the federal tax code to ensure survivors of sexual abuse and unwanted sexual contact do not have to pay taxes on settlement income when they prevail legally against their abuser.

Under current law and practice of the Internal Revenue Service (IRS), payments for damages awarded on account of personal physical injuries or physical sickness are exempt from gross income for federal income tax purposes. For purposes of establishing a "physical injury," the IRS has required that survivors show physical manifestations such as bruising, cuts, or bleeding for the settlement to qualify for tax-free treatment. Providing evidence of observable harm can be especially difficult and unfair to prove in circumstances of sexual acts or sexual contact, not least because these physical injuries may not be visible or have healed.

"Every time a survivor comes forward it takes extraordinary courage in the face of personal risk, scrutiny, and cost. Sexual abuse survivors shouldn't be saddled with a tax bill or have to fight the IRS to qualify for a tax exemption. Our bipartisan legislation secures a critical fix in our tax code. I am so thrilled that the Ways and Means Committee passed this legislation, bringing us closer to obtaining parity to these survivors," said Rep. Moore.

Several organizations supported the Survivor Justice Tax Prevention Act, including:

"The AASC is thrilled to have major progress on HR 2347. We know we still have much work ahead of us to get this bill over the finish line," said AASC President Brian Schachter. "We are thankful to the bill co-sponsors, Congressman Lloyd Smucker and Congresswoman Gwen Moore for their leadership on this critical issue as well as Chairman Jason Smith for making the Survivor Justice Tax Prevention Act a top priority."

"This is another positive development towards making the Survivor Justice Tax Prevention Act the law of the land," said Louis Masry, Immediate Past President and AASC Co-Founder. "When passed, HR 2347 will benefit injured persons across the country. This has been the primary legislative goal of the AASC since its inception, and we are motivated by this momentum."

"Sexual assault upends a person's life in profound and enduring ways, yet survivors continue to face significant barriers when seeking justice. This bill directly addresses one of those barriers by affirming that the trauma a survivor endured is no less real simply because it may not leave a visible injury. We applaud the effort to close the gap in the tax code and to give sexual assault survivors the clarity and peace of mind they need to heal and move forward," said Amanda Walsh and the Victim Rights Law Center.

"Legal Momentum, The Women's Legal Defense and Education Fund, strongly endorses the Survivor Justice Tax Prevention Act, because no survivor of sexual abuse should face a second injustice from the tax code after enduring profound trauma. It is unacceptable that survivors are taxed on settlement awards, funds intended to acknowledge harm and support recovery."

"The Survivor Justice Tax Prevention Act is a common-sense reform that would help ensure healing does not come with a financial penalty. By ensuring that settlement awards are not taxed, this legislation affirms that our systems support, not further harm, the brave survivors who come forward."

"The Athlete Survivors' Assist, or The Assist-an athlete survivor-led organization working to prevent abuse and strengthen systems of accountability within sports - strongly supports the Survivor Justice Tax Prevention Act, which ensures survivors of sexual abuse are not taxed on the justice they rightfully receive, said Julie Ann Rivers -Cochran, MSW, Executive Director. Survivors should not face a second burden from the tax code after enduring trauma-this commonsense, bipartisan fix removes an unfair barrier to healing and recovery. We urge swift passage of this important legislation."

Read YWCA USA, Taxpayers Protection Alliance, the Athlete Survivors' Assist, Futures Without Violence, and the American Association of Settlement Consultants letters of support for the Survivor Justice Tax Prevention Act.