Human Trafficking Survivor Tax Relief Act

Subjects: Taxation, Civil actions and liability, Crime victims, Criminal procedure and sentencing, Human trafficking, Income tax exclusion

Summary:  <p><b>Human Trafficking Survivor Tax Relief Act</b></p> <p>This bill excludes from gross income, for income tax purposes, any civil damages, restitution, or other monetary award (including compensatory or statutory damages and restitution imposed in a criminal matter) awarded pursuant to an order of mandatory restitution or in a criminal proceeding for peonage, slavery, or human trafficking.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 159 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 159

To amend the Internal Revenue Code of 1986 to provide an exemption from 
 gross income for mandatory restitution or civil damages as recompense 
                      for trafficking in persons.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 31, 2023

   Mr. Cornyn (for himself, Mr. Wyden, Mr. Lankford, and Ms. Sinema) 
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 provide an exemption from 
 gross income for mandatory restitution or civil damages as recompense 
                      for trafficking in persons.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Human Trafficking Survivor Tax 
Relief Act''.

SEC. 2. EXEMPTING FROM FEDERAL INCOME TAXATION RESTITUTION AND CIVIL 
              DAMAGES AWARDED UNDER SECTIONS 1593 AND 1595 OF TITLE 18, 
              UNITED STATES CODE.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139J. CERTAIN AMOUNT RECEIVED AS RESTITUTION OR CIVIL DAMAGES AS 
              RECOMPENSE FOR TRAFFICKING IN PERSONS.

    ``(a) Exclusion From Gross Income.--Gross income shall not include 
any civil damages, restitution, or other monetary award (including 
compensatory or statutory damages and restitution imposed in a criminal 
matter) awarded--
            ``(1) pursuant to an order of restitution under section 
        1593 of title 18, United States Code, or
            ``(2) in an action under section 1595 of title 18, United 
        States Code.''.
    (b) Conforming Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting before the item relating to section 140 the 
following new item:

``Sec. 139J. Certain amount received as restitution or civil damages as 
                            recompense for trafficking in persons.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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