Latest action: Received in the Senate.
Bill is filed in its originating chamber and assigned a number.
Sponsor
Lloyd Smucker (R-PA)
Filed in the House.
Next: In Committee
Members of the committee(s) the bill was referred to
Prevents tax penalties for survivors of crime who receive money from perpetrators.
The problem
Crime survivors may receive restitution or settlements from offenders but face unexpected tax bills on that money, adding financial burden to already-harmed victims.
The proposal
Exempts crime survivor restitution and certain victim compensation payments from federal income taxation, preventing the IRS from taxing money victims receive.
The impact
Crime survivors receive full restitution without tax reduction. The government loses some tax revenue. Other taxpayers may indirectly share tax burden.
Survivors receive complete restitution without losing money to taxes. This lets victims use all awarded compensation for medical bills, therapy, and recovery needs.
Crime survivors are not receiving income they earned—they are receiving compensation for harm done. Taxing them treats them like regular earners, which seems unfair.
Similar exemptions already exist for some victim payments and personal injury settlements. This bill extends logical treatment to restitution payments.
Victims may be less discouraged from pursuing cases when they know they will not face tax surprises on compensation awards.
The federal government collects less income tax money. This means either higher deficits or other programs receive less funding, depending on budget decisions.
People might disguise regular income or settlements as restitution to avoid taxes. Clear rules would be needed to prevent misuse, adding complexity.
Wealthy crime survivors receive larger dollar amounts in restitution, so they gain larger tax savings. Lower-income victims see smaller benefits.
Other people receiving compensation for harm (like insurance payouts) still pay taxes, while crime victims would not. This creates inconsistent tax treatment.
Generated by AI from the bill text. Not a prediction and not legal or policy advice. The percentage is the model's own rating of each item — self-reported, and not a measure of how accurate it is.
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Individual contributions, grouped by employer · FEC
Where their individual donors work · 2026 cycle
Money from people who work there, not from the company. Not tied to this bill.
Itemized individual contributions via FEC, grouped by the employer each contributor self-reported. Companies and unions cannot contribute to federal candidates from their treasuries, so these totals are money from people who work at an employer — never from the organization itself. They are campaign contributions covering a full election cycle and are not connected to this bill.
Senate LDA lobbying disclosures
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