Wrongful Convictions Tax Relief Act of 2015

To amend the Internal Revenue Code of 1986 to provide tax benefits to individuals who have been wrongfully incarcerated. 1. Short title This Act may be cited as the Wrongful Convictions Tax Relief Act of 2015 2. Exclusion for wrongfully incarcerated individuals (a) In general Part III of subchapter B of chapter 1 139F. Certain amounts received by wrongfully incarcerated individuals (a) Exclusion from gross income In the case of any wrongfully incarcerated individual, 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) relating to the incarceration of such individual for the covered offense for which such individual was convicted. (b) Wrongfully incarcerated individual For purposes of this section, the term wrongfully incarcerated individual (1) who was convicted of a covered offense, (2) who served all or part of a sentence of imprisonment relating to that covered offense, and (3) (A) who was pardoned, granted clemency, or granted amnesty for that covered offense because that individual was innocent of that covered offense, or (B) (i) for whom the judgment of conviction for that covered offense was reversed or vacated, and (ii) for whom the indictment, information, or other accusatory instrument for that covered offense was dismissed or who was found not guilty at a new trial after the judgment of conviction for that covered offense was reversed or vacated. (c) Covered offense For purposes of this section, the term covered offense . (b) Conforming amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139E the following new item: Sec. 139F. Certain amounts received by wrongfully incarcerated individuals. . (c) Effective date The amendments made by this section shall apply to taxable years beginning before, on, or after the date of the enactment of this Act. (d) Waiver of limitations If the credit or refund of any overpayment of tax resulting from the application of this Act to a period before the date of enactment of this Act is prevented as of such date by the operation of any law or rule of law (including res judicata), such credit or refund may nevertheless be allowed or made if the claim therefor is filed before the close of the 1-year period beginning on the date of the enactment of this Act.

Summary: Wrongful Convictions Tax Relief Act of 2015 Amends the Internal Revenue Code to allow a wrongfully incarcerated individual an exclusion from gross income for civil damages, restitution, or other monetary awards received as compensation for a wrongful incarceration. Defines "wrongfully incarcerated individual" as: (1) an individual who was convicted of a criminal offense under federal or state law, who served all or part of a sentence of imprisonment relating to such offense, and who was pardoned, granted clemency, or granted amnesty because of actual innocence of the offense; or (2) an individual for whom the conviction for such offense was reversed or vacated and for whom the indictment, information, or other accusatory instrument for such offense was dismissed or who was found not guilty at a new trial after the conviction was reversed or vacated.