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119th CONGRESS
2d Session |
To amend the Internal Revenue Code of 1986 to impose a tax on payments received from any settlement fund established as a result of a civil action filed by the President of the United States against the Internal Revenue Service.
Mr. Pocan introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to impose a tax on payments received from any settlement fund established as a result of a civil action filed by the President of the United States against the Internal Revenue Service.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the “Tax the Grift Act”.
SEC. 2. Imposition of tax on qualified settlement fund payments.
(a) In general.—Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:
“SEC. 5000E. Imposition of tax on qualified settlement fund payments.
“(a) In general.—There is hereby imposed on any taxpayer for any taxable year a tax equal to 100 percent of any qualified settlement fund payment received by such taxpayer during such taxable year.
“(b) Qualified settlement fund payment.—For purposes of this section, the term ‘qualified settlement fund payment’ means, with respect to any taxpayer for any taxable year, any amount received by such taxpayer during such taxable year from any fund established as a result of a civil action filed by the President of the United States against the Internal Revenue Service.
“(1) ADMINISTRATIVE PROVISIONS.—For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.
“(2) EXCLUSION FROM GROSS INCOME.—For purposes of chapter 1, the gross income of any taxpayer for any taxable year shall not include any qualified settlement fund payment received by such taxpayer during such taxable year.”.
(b) No deduction from income tax.—Section 275(a)(6) of such Code is amended by inserting “50B,” after “50A,”.
(c) Clerical amendment.—The table of chapters for subtitle D of such Code is amended by inserting after the item relating to chapter 50A the following new item:
(d) Effective date.—The amendments made by this section shall apply with respect to amounts received after the date of the enactment of this Act.