I 

118TH CONGRESS 

2D SESSION H. R. 9254 

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 HOUSE OF REPRESENTATIVES 

AUGUST 2, 2024 

Ms. LOIS FRANKEL of Florida (for herself and Ms. TENNEY) introduced the 

following bill; which was referred to the Committee on Ways and Means 

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 ‘‘Gross income shall not include any amount received 

12 in connection with a claim of unlawful discrimination (as 

13 defined in section 62(e)) (whether by lump sum or periodic 

14 payments) as a judgment, award, or settlement (including 

15 backpay, frontpay, punitive damages, or any payments 

16 made in connection with a release of claims or to resolve, 

17 settle, or litigate claims) from— 

18 ‘‘(1) a dispute involving an alleged nonconsen19 sual sexual act or sexual contact, as such terms are 

20 defined in section 2246 of title 18, United States 

21 Code, or similar applicable Tribal or State law, in22 cluding when the victim lacks capacity to consent, or 

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


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

2 such Code is amended by striking ‘‘or’’ at the end of para3 graph (22), by striking the period at the end of paragraph 

4 (23) and inserting ‘‘; or’’, and by inserting after para5 graph (23) the following new paragraph: 

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

7 from the gross income of the employee under section 

8 139J.’’. 

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

10 of such Code is amended by adding at the end the fol11 lowing new paragraph: 

12 ‘‘(13) AMOUNTS RECEIVED AS JUDGMENTS, 

13 AWARDS, AND SETTLEMENTS WITH RESPECT TO

14 SEXUAL ASSAULT OR SEXUAL HARASSMENT

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

16 any amount received which is excludable from the 

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

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

19 such Code is amended by striking ‘‘or’’ at the end of para20 graph (19), by striking the period at the end of paragraph 

21 (20) and inserting ‘‘, or’’, and by inserting after para22 graph (20) the following new paragraph: 

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

24 from the gross income of the employee under section 

25 139J.’’. 


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

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

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

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

5 (23) the following new paragraph: 

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

7 from the gross income of the employee under section 

8 139J.’’. 

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

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

11 Revenue Code of 1986 is amended by inserting before the 

12 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.’’. 

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

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

Æ 


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