Bill Summary
This legislation, called the "Human Trafficking Survivor Tax Relief Act," seeks to amend the Internal Revenue Code of 1986. The amendment would exempt any civil damages awarded under section 1595 of title 18, United States Code (which pertains to trafficking in persons), from being counted as gross income for tax purposes. This means that individuals who receive civil damages as recompense for being trafficked would not have to pay taxes on that money. This amendment would go into effect for taxable years beginning after the date of the enactment of the Act.
Possible Impacts
1. The Human Trafficking Survivor Tax Relief Act could provide financial relief for survivors of human trafficking by exempting civil damages awarded to them from federal income tax. This could help alleviate the financial burden and trauma experienced by these individuals.
2. The legislation could also incentivize victims of human trafficking to come forward and seek justice through the legal system, knowing that any civil damages awarded to them would not be subjected to taxation.
3. In addition, the passage of this bill could bring attention to the issue of human trafficking and the need for stricter laws and enforcement to combat it, ultimately leading to better protection for vulnerable individuals.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 169 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 169
To amend the Internal Revenue Code of 1986 to provide an exemption from
gross income for civil damages as recompense for trafficking in
persons.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 16, 2019
Mr. Cornyn (for himself, Mr. Wyden, Mr. Portman, Mr. Carper, Ms.
Klobuchar, and Mrs. Capito) 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 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 CIVIL DAMAGES AWARDED
UNDER SECTION 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. 139H. CERTAIN AMOUNT RECEIVED AS 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 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. 139H. Certain amount received as 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.
<all>