II 

118TH CONGRESS 

1ST SESSION S. 3459 

To amend the Internal Revenue Code of 1986 to allow an above-the-line 

deduction for attorney fees and costs in connection with consumer claim 

awards. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 11, 2023 

Ms. CORTEZ MASTO (for herself and Mr. BENNET) 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 allow an 

above-the-line deduction for attorney fees and costs in 

connection with consumer claim awards. 

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 ‘‘End Double Taxation 

5 of Successful Consumer Claims Act’’. 


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•S 3459 IS

1 SEC. 2. ABOVE-THE-LINE DEDUCTION FOR ATTORNEY FEES 

2 AND COSTS IN CONNECTION WITH CON3 SUMER CLAIM AWARDS. 

4 (a) IN GENERAL.—The first sentence of paragraph 

5 (20) of section 62(a) of the Internal Revenue Code of 

6 1986 is amended by inserting ‘‘or a claim of a consumer 

7 protection violation (as defined in subsection (f))’’ after 

8 ‘‘section 1862(b)(3)(A) of the Social Security Act (42 

9 U.S.C. 1395y(b)(3)(A))’’. 

10 (b) CONSUMER PROTECTION VIOLATION DEFINED.— 

11 Section 62 of the Internal Revenue Code of 1986 is 

12 amended by adding at the end the following new sub13 section: 

14 ‘‘(f) CONSUMER PROTECTION VIOLATION DE15 FINED.—For purposes of subsection (a)(20), the term 

16 ‘consumer protection violation’ means an act that is un17 lawful under any of the following: 

18 ‘‘(1) Section 987 of title 10, United States 

19 Code. 

20 ‘‘(2) Section 6, 8, or 9 of the Real Estate Set21 tlement Procedures Act of 1974 (12 U.S.C. 2605, 

22 2607, or 2608). 

23 ‘‘(3) The Expedited Funds Availability Act (12 

24 U.S.C. 4001 et seq.). 

25 ‘‘(4) The Homeowners Protection Act of 1998 

26 (12 U.S.C. 4901 et seq.). 


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•S 3459 IS

1 ‘‘(5) The Truth in Lending Act (15 U.S.C. 

2 1601 et seq.). 

3 ‘‘(6) The Credit Repair Organizations Act (15 

4 U.S.C. 1679 et seq.). 

5 ‘‘(7) The Fair Credit Reporting Act (15 U.S.C. 

6 1681 et seq.). 

7 ‘‘(8) The Equal Credit Opportunity Act (15 

8 U.S.C. 1691 et seq.). 

9 ‘‘(9) The Fair Debt Collection Practices Act 

10 (15 U.S.C. 1692 et seq.). 

11 ‘‘(10) The Electronic Fund Transfer Act (15 

12 U.S.C. 1693 et seq.). 

13 ‘‘(11) The Interstate Land Sales Full Disclo14 sure Act (15 U.S.C. 1701 et seq.). 

15 ‘‘(12) The Consumer Product Safety Act (15 

16 U.S.C. 2051 et seq.). 

17 ‘‘(13) The Magnuson-Moss Warranty-Federal 

18 Trade Commission Improvement Act (15 U.S.C. 

19 2301 et seq.). 

20 ‘‘(14) The Servicemembers Civil Relief Act (50 

21 U.S.C. 3901 et seq.). 

22 ‘‘(15) Any provision of Federal law prohibiting 

23 unfair or deceptive trade or credit practices. 


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•S 3459 IS

1 ‘‘(16) Any provision of Federal, State, or local 

2 law, or common law claims permitted under Federal, 

3 State, or local law— 

4 ‘‘(A) providing for the enforcement of con5 sumer protection, or 

6 ‘‘(B) regulating any aspect of consumer 

7 transactions, including claims for unfair, decep8 tive, or abusive trade or credit practices, or for 

9 other actions that cause harm to an individual 

10 by a seller or provider of property, services, se11 curities or other investments, money, or credit 

12 for personal, family, or household use.’’. 

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

14 this section shall apply to attorney fees and court costs 

15 paid during taxable years ending after the date of the en16 actment of this Act with respect to any judgment or settle17 ment occurring during such taxable years. 

Æ 


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