Survivor Justice Tax Prevention Act
The source supplies the latest action, but no lifecycle stage.
Latest action (15 Sep 2026): Read twice and referred to the Committee on Finance.
What this bill does
S. 5395 is a bill introduced in the U.S. Senate that, based on its title, would amend the Internal Revenue Code of 1986 to exclude compensatory damages received in connection with sexual assault claims from a person's gross income for federal tax purposes. The title also references "other purposes," but no further details about additional provisions are available at this time.
As described, the bill would primarily affect individuals who receive compensatory damages through settlements or court judgments related to sexual assault claims. If enacted, such individuals would not be required to count those damages as taxable income, potentially affecting their federal tax liability. The full scope of who else might be affected—such as employers, insurers, or other parties involved in such settlements—cannot be determined without the complete bill text.
The bill was introduced on September 15, 2026, by Senator Catherine Cortez Masto (D-NV) and its status is listed simply as "Introduced." This means it has been formally presented to the Senate but has not yet been considered, debated, or voted on by any committee or the full chamber. The next steps would typically involve referral to a relevant committee, such as the Senate Finance Committee, for review. The complete legislative text has not yet been published, so specific details about definitions, effective dates, or other provisions are not yet publicly available.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Survivor Justice Tax Prevention Act
This bill excludes from gross income certain damages received by an individual due to any sexual act or sexual contact and establishes the applicable burden of proof in court proceedings regarding the characterization of such damages for federal tax purposes.
Under current law, amounts received as damages (other than punitive damages) from a judgment, award, or settlement of a claim may be excluded from gross income and, thus, are not subject to federal income tax, if attributable to a personal physical injury or physical sickness. The Internal Revenue Service (IRS) generally interprets personal physical injury to require observable bodily harm (e.g., bruising, cuts, swelling, or bleeding).
Under the bill, amounts received as damages (other than punitive damages) from a judgment, award, or settlement due to any sexual act or sexual conduct, whether or not there are medical records or observable injuries of such act or contact, may be excluded from gross income.
Further, if a judgment, award, or settlement states that damages are due to any sexual act or sexual conduct, then the IRS has the burden of proving otherwise in court proceedings related to the tax liability associated with such damages.
Finally, the bill requires the IRS to promote public awareness of the exclusion from gross income of damages related to any sexual act or sexual contact.
Timeline
15 Sep 2026
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 5395 do?
- S. 5395 is a bill introduced in the U.S. Senate that, based on its title, would amend the Internal Revenue Code of 1986 to exclude compensatory damages received in connection with sexual assault claims from a person's gross income for federal tax purposes. The title also references "other purposes," but no further details about additional provisions are available at this time. As described, the bill would primarily affect individuals who receive compensatory damages through settlements or court judgments related to sexual assault claims. If enacted, such individuals would not be required to count those damages as taxable income, potentially affecting their federal tax liability. The full scope of who else might be affected—such as employers, insurers, or other parties involved in such settlements—cannot be determined without the complete bill text. The bill was introduced on September 15, 2026, by Senator Catherine Cortez Masto (D-NV) and its status is listed simply as "Introduced." This means it has been formally presented to the Senate but has not yet been considered, debated, or voted on by any committee or the full chamber. The next steps would typically involve referral to a relevant committee, such as the Senate Finance Committee, for review. The complete legislative text has not yet been published, so specific details about definitions, effective dates, or other provisions are not yet publicly available.
- Has S. 5395 become law?
- The source does not supply a confirmed lifecycle stage for S. 5395. Check the latest action and official source below.
- Who sponsored S. 5395?
- S. 5395 was sponsored by Sen. Cortez Masto, Catherine [D-NV] (D-NV), with 1 cosponsor.
- What's the latest action on S. 5395?
- Read twice and referred to the Committee on Finance. (15 Sep 2026).
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