Senator Reverend Warnock is joining a bipartisan group of his Senate Colleagues to introduce the Human Trafficking Survivor Tax Relief Act
This legislation would prevent the civil damages, restitutions, and other monetary awards of human trafficking victims from being federally taxed
In 2021, 60% of Georgia’s human trafficking victims were forced to pay restitution, which is above the national average
The Federal Bureau of Investigation has ranked Atlanta as one of the top 14 cities in America for human trafficking
Senator Reverend Warnock: “I am proud to join this legislation to ease the lifelong financial burdens that so many of these victims face”
WASHINGTON, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA) today introduced the Human Trafficking Survivor Tax Relief Act, which would exempt civil damages, restitution, and other monetary awards given to human trafficking survivors from federal income taxes. It would also codify current Internal Revenue Service (IRS) guidance that makes restitution payments made to survivors in criminal cases free from federal income taxes. In addition to Senator Warnock, Senators John Cornyn (R-TX), Ron Wyden (D-OR) and James Lankford (R-OK) and U.S. Representatives Jodey Arrington (TX-R-19) and Brad Schneider (IL-D-10) also co-lead the introduction.
“Human trafficking is one of the most horrendous and inhumane things we continue to face in modern society,” said Senator Reverend Warnock. “I am proud to join this legislation to ease the lifelong financial burdens that so many of these victims face. Although money cannot undo the harms they’ve suffered, it can usher in new opportunities for victims of these heinous crimes.”
“Texans who have been exploited, coerced, or forced into involuntary sexual acts or labor should not have to pay taxes on the payments awarded to them after enduring such a horrific crime,” said Senator Cornyn. “Providing these survivors with tax-relief is one small step we can take to alleviate some of the burden on their journey to healing.”
Under the Internal Revenue Code, civil damages awarded to human trafficking victims are considered taxable income. This legislation would exempt civil damages from federal income taxes, allowing survivors to file their taxes without worrying of penalties or fees for not reporting awarded damages as income. It also would provide parity between criminal restitution, which is tax-exempt through IRS Notice 2012-12, and civil damages, which are not. Often, human trafficking survivors’ only recourse to pursue justice against traffickers is through civil litigation. Finally, the bill codifies IRS Notice 2012-12, ensuring that restitution payments made in criminal cases remain tax-free.
The Human Trafficking Survivor Tax Relief Act is endorsed by the Freedom Network USA and Rights4Girls.
A copy of the bill text can be found HERE.