Section 1 Short title
This Act may be cited as the “Tax the Grift Act”.
Tax the Grift Act
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.
Sec. 2 Imposition of tax on qualified settlement fund payments
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
“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.”
No deduction from income tax— Section 275(a)(6) of such Code is amended by inserting “50B,” after “50A,”.
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:
Effective date— The amendments made by this section shall apply with respect to amounts received after the date of the enactment of this Act.