II 

118TH CONGRESS 

2D SESSION S. 5566 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

any judgments, awards, and settlements with respect to sexual assault 

or sexual harassment claims, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 17 (legislative day, DECEMBER 16), 2024 

Mrs. GILLIBRAND (for herself and Mrs. BLACKBURN) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income any judgments, awards, and settlements with respect to sexual assault or sexual harassment claims, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Fairness for Sur5 vivors Act’’. 


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1 SEC. 2. EXEMPTING FROM FEDERAL INCOME TAXATION 

2 PAYMENTS ALLOCABLE TO SEXUAL ASSAULT 

3 OR SEXUAL HARASSMENT CLAIMS. 

4 (a) IN GENERAL.—Part III of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 is amended 

6 by inserting before section 140 the following new section: 

7 ‘‘SEC. 139J. AMOUNTS RECEIVED AS JUDGMENTS, AWARDS, 

8 AND SETTLEMENTS WITH RESPECT TO SEX9 UAL ASSAULT OR SEXUAL HARASSMENT 

10 CLAIMS. 

11 ‘‘(a) IN GENERAL.—Gross income shall not include 

12 any amount received as a judgment, award, or settlement 

13 (including back pay, front pay, punitive damages, or any 

14 payments made in connection with a release of claims or 

15 to resolve, settle, or litigate claims), whether by lump sum 

16 or periodic payments, from— 

17 ‘‘(1) a dispute involving an alleged nonconsen18 sual sexual act or sexual contact, as such terms are 

19 defined in section 2246 of title 18, United States 

20 Code, or similar applicable Tribal, State, or local 

21 law, including when the victim lacks capacity to con22 sent, or 

23 ‘‘(2) a dispute relating to conduct that is al24 leged to constitute sexual harassment under applica25 ble Federal, Tribal, State, or local law, including 


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1 common law claims permitted under Federal, Tribal, 

2 State, or local law. 

3 ‘‘(b) REGULATIONS AND GUIDANCE.—The Secretary 

4 shall issue such regulations or other guidance as the Sec5 retary determines necessary to carry out the purposes of 

6 this section, including regulations or other guidance to dis7 tinguish amounts received in connection with a claim de8 scribed in subsection (a) from other amounts received as 

9 part of a judgment, award, or settlement, such as com10 pensation for services performed.’’. 

11 (b) SOCIAL SECURITY TAXES.—Section 3121(a) of 

12 such Code is amended by striking ‘‘or’’ at the end of para13 graph (22), by striking the period at the end of paragraph 

14 (23) and inserting ‘‘; or’’, and by inserting after para15 graph (23) the following new paragraph: 

16 ‘‘(24) any amount received which is excludable 

17 from the gross income of the employee under section 

18 139J.’’. 

19 (c) RAILROAD RETIREMENT TAX.—Section 3231(e) 

20 of such Code is amended by adding at the end the fol21 lowing new paragraph: 

22 ‘‘(13) AMOUNTS RECEIVED AS JUDGMENTS, 

23 AWARDS, AND SETTLEMENTS WITH RESPECT TO

24 SEXUAL ASSAULT OR SEXUAL HARASSMENT

25 CLAIMS.—The term ‘compensation’ shall not include 


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1 any amount received which is excludable from the 

2 gross income of the employee under section 139J.’’. 

3 (d) UNEMPLOYMENT TAXES.—Section 3306(b) of 

4 such Code is amended by striking ‘‘or’’ at the end of para5 graph (19), by striking the period at the end of paragraph 

6 (20) and inserting ‘‘; or’’, and by inserting after para7 graph (20) the following new paragraph: 

8 ‘‘(21) any amount received which is excludable 

9 from the gross income of the employee under section 

10 139J.’’. 

11 (e) WAGE WITHHOLDING.—Section 3401 of such 

12 Code is amended by striking ‘‘or’’ at the end of paragraph 

13 (22), by striking the period at the end of paragraph (23) 

14 and inserting ‘‘, or’’, and by inserting after paragraph 

15 (23) the following new paragraph: 

16 ‘‘(24) any amount received which is excludable 

17 from the gross income of the employee under section 

18 139J.’’. 

19 (f) CLERICAL AMENDMENT.—The table of sections 

20 for part III of subchapter B of chapter 1 of the Internal 

21 Revenue Code of 1986 is amended by inserting before the 

22 item relating to section 140 the following new item: 

‘‘Sec. 139J. Amounts received as judgments, awards, and settlements with respect to sexual assault or sexual harassment claims.’’. 


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1 (g) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

Æ 


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