[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2802 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2802

  To amend the Internal Revenue Code of 1986 to restore the exclusion 
      from gross income for damage awards for emotional distress.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 4, 1997

Mr. Frank of Massachusetts (for himself, Mr. Delahunt, Ms. Carson, and 
  Mr. Frost) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to restore the exclusion 
      from gross income for damage awards for emotional distress.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. RESTORATION OF EXCLUSION FROM GROSS INCOME FOR DAMAGE AWARDS 
              FOR EMOTIONAL DISTRESS.

    (a) In General.--Subsection (a) of section 104 of the Internal 
Revenue Code of 1986 (relating to compensation for injuries or 
sickness) is amended--
            (1) by striking ``physical'' each place it appears in 
        paragraph (2), and
            (2) by striking the last 2 sentences and inserting the 
        following new sentence: ``For purposes of paragraph (2), the 
        term `personal injuries or sickness' includes emotional 
        distress.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts received after December 31, 1996, in taxable years 
ending after such date.
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