Memphis Standard

U.S. Senators Marsha Blackburn and Kirsten Gillibrand have introduced the Tax Fairness for Survivors Act, a bipartisan bill aimed at removing federal tax penalties on settlements, awards, and judgments paid to survivors of sexual harassment and assault. The current law exempts payments for damages from physical injury cases from taxation but requires survivors of sexual harassment or assault to prove physical injuries to avoid being taxed.

Senator Blackburn stated, “Survivors of sexual assault and sexual harassment should not be forced to pay taxes on compensation they receive as a result of the crime.” She emphasized that the legislation would prevent survivors from bearing unjust financial burdens.

Senator Gillibrand added, “It is unacceptable to force survivors of sexual assault and harassment to pay taxes on the compensation they rightfully deserve.” She described the act as commonsense legislation designed to remove this tax burden so that survivors can focus on healing.

The introduction of this bill in the Senate follows similar efforts in the House by Representatives Lois Frankel and Claudia Tenney. The National Alliance to End Sexual Violence and Lift Our Voices have endorsed the bill.

Representative Frankel remarked, “Survivors of sexual harassment and assault deserve fair treatment under the law,” stressing that it is unacceptable for women who have suffered such trauma to face additional tax burdens. Congresswoman Tenney noted that the bill closes an unfair loophole by exempting settlements from income taxes, aligning them with those for physical injuries.

The full text of the bill is available online.