119 HR 9075 IH: Tax the Grift Act U.S. House of Representatives 2026-05-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS2d SessionH. R. 9075IN THE HOUSE OF REPRESENTATIVESMay 29, 2026Mr. Pocan introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo 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.

1.

Short title

This Act may be cited as the Tax the Grift Act.

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:50B

Qualified settlement fund payments

Sec. 5000E. Imposition of tax on qualified settlement fund payments.

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.(c)

Special rules

(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:Chapter 50B—Qualified settlement fund payments..(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.