Tax the Grift Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9075 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9075

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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 29, 2026

  Mr. Pocan 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 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,

SECTION 1. SHORT TITLE.

    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:

           ``CHAPTER 50B--QUALIFIED SETTLEMENT FUND PAYMENTS

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

``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.
    ``(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.
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