Sexual assault settlement amounts are generally not considered taxable income for the victim. The tax treatment of such settlements is typically governed by the Internal Revenue Code (IRC) of the United States. Specifically, IRC Section 104(a)(2) states that "gross income does not include...the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal physical injuries or physical sickness."