S. 895 — Human Trafficking Survivor Tax Relief Act (passed Senate April 27, 2022)

Summary

S. 895, an act that passed the Senate April 27, 2022, amends 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. The short title is the Human Trafficking Survivor Tax Relief Act. Section 2 inserts a new section 139J providing that gross income shall not include any civil damages, restitution, or other monetary award awarded pursuant to an order of restitution under section 1593 of title 18, or in an action under section 1595 of title 18. The section applies to taxable years beginning after the date of the enactment of the Act.

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Full text

117TH CONGRESS
   2D SESSION
                      S. 895

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

 1      Be it enacted by the Senate and House of Representa-
 2 tives of the United States of America in Congress assembled,
                                    2
 1   SECTION 1. SHORT TITLE.

 2       This Act may be cited as the ‘‘Human Trafficking
 3 Survivor Tax Relief Act’’.
 4   SEC. 2. EXEMPTING FROM FEDERAL INCOME TAXATION

 5                    RESTITUTION AND CIVIL DAMAGES AWARD-

 6                    ED UNDER SECTIONS 1593 AND 1595 OF TITLE

 7                    18, UNITED STATES CODE.

 8       (a) IN GENERAL.—Part III of subchapter B of chap-
 9 ter 1 of the Internal Revenue Code of 1986, as amended
10 by section 9501(b)(4) of the American Rescue Plan Act
11 of 2021 (Public Law 117–2), is amended by inserting be-
12 fore section 140 the following new section:
13   ‘‘SEC. 139J. CERTAIN AMOUNT RECEIVED AS RESTITUTION

14                    OR CIVIL DAMAGES AS RECOMPENSE FOR

15                    TRAFFICKING IN PERSONS.

16       ‘‘(a) EXCLUSION FROM GROSS INCOME.—Gross in-
17 come shall not include any civil damages, restitution, or
18 other monetary award (including compensatory or statu-
19 tory damages and restitution imposed in a criminal mat-
20 ter) awarded—
21                 ‘‘(1) pursuant to an order of restitution under
22       section 1593 of title 18, United States Code, or
23                 ‘‘(2) in an action under section 1595 of title 18,
24       United States Code.’’.
25       (b) CONFORMING AMENDMENT.—The table of sec-
26 tions for part III of subchapter B of chapter 1 of the In-
      † S 895 ES
                                      3
1 ternal Revenue Code of 1986 is amended by inserting be-
2 fore the item relating to section 140 the following new
3 item:
    ‘‘Sec. 139J. Certain amount received as restitution or civil damages as rec-
                    ompense for trafficking in persons.’’.

4         (c) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to taxable years beginning after
6 the date of the enactment of this Act.
          Passed the Senate April 27, 2022.
          Attest:




                                                                Secretary.




      † S 895 ES
117TH CONGRESS
   2D SESSION     S. 895
               AN ACT
To amend the Internal Revenue Code of 1986 to
  provide an exemption from gross income for
  mandatory restitution or civil damages as rec-
  ompense for trafficking in persons.


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