H.R. 2347 — Survivor Justice Tax Prevention Act

This section expands the exclusion from gross income under IRC §104(a)(2)—currently limited to damages received on account of personal physical injuries or physical sickness—to also include non-punitive damages received on account of any sexual act or sexual contact (as defined in 18 U.S.C. §2246(2) and (3)), regardless of medical records or observable injuries. (1) It adds new subsection (d) providing that if a decision or agreement states such damages are on account of a sexual act or contact, the statement constitutes credible evidence under IRC §7491(a) and satisfies the taxpayer's burden of proof. (2) The amendments apply to amounts received pursuant to decisions made or agreements entered into after enactment, treating a decision as made after enactment if the first payment is received after that date and excluding agreements that replace, supersede, or revise prior agreements. (3) It directs the Secretary of the Treasury, in consultation with the Department of Justice Office on Violence Against Women and other agencies, to conduct a public awareness program regarding the exclusion; and (4) it specifies that no inference may be drawn from the amendments regarding whether the prior exclusion requires medical records or observable injuries for physical injuries or sickness.