End Double Taxation of Successful Consumer Claims Act

II 116TH CONGRESS 2D SESSION S. 3913 To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for attorney fees and costs in connection with consumer claim awards. IN THE SENATE OF THE UNITED STATES JUNE 8, 2020 Ms. CORTEZ MASTO (for herself, Mr. BROWN, Mr. BLUMENTHAL, Mr. VAN HOLLEN, and Mr. MARKEY) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for attorney fees and costs in connection with consumer claim awards. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘End Double Taxation 4 of Successful Consumer Claims Act’’. 5 VerDate Sep 11 2014 04:57 Jun 24, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3913.IS S3913 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3913 IS SEC. 2. ABOVE-THE-LINE DEDUCTION FOR ATTORNEY FEES 1 AND COSTS IN CONNECTION WITH CON- 2 SUMER CLAIM AWARDS. 3 (a) IN GENERAL.—The first sentence of paragraph 4 (20) of section 62(a) of the Internal Revenue Code of 5 1986 is amended by inserting ‘‘or a claim of a consumer 6 protection violation (as defined in subsection (g))’’ after 7 ‘‘section 1862(b)(3)(A) of the Social Security Act (42 8 U.S.C. 1395y(b)(3)(A))’’. 9 (b) CONSUMER PROTECTION VIOLATION DEFINED.— 10 Section 62 of the Internal Revenue Code of 1986 is 11 amended by adding at the end the following new sub- 12 section: 13 ‘‘(g) CONSUMER PROTECTION VIOLATION DE- 14 FINED.—For purposes of subsection (a)(20), the term 15 ‘consumer protection violation’ means an act that is un- 16 lawful under any of the following: 17 ‘‘(1) Section 987 of title 10, United States 18 Code. 19 ‘‘(2) Sections 6, 8, or 9 of the Real Estate Set- 20 tlement Procedures Act of 1974 (12 U.S.C. 2605, 21 2607, or 2608). 22 ‘‘(3) The Expedited Funds Availability Act (12 23 U.S.C. 4001 et seq.). 24 ‘‘(4) The Homeowners Protection Act of 1998 25 (12 U.S.C. 4901 et seq.). 26 VerDate Sep 11 2014 04:57 Jun 24, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3913.IS S3913 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3913 IS ‘‘(5) The Truth in Lending Act (15 U.S.C. 1 1601 et seq.). 2 ‘‘(6) The Credit Repair Organizations Act (15 3 U.S.C. 1679 et seq.). 4 ‘‘(7) The Fair Credit Reporting Act (15 U.S.C. 5 1681 et seq.). 6 ‘‘(8) The Equal Credit Opportunity Act (15 7 U.S.C. 1691 et seq.). 8 ‘‘(9) The Fair Debt Collection Practices Act 9 (15 U.S.C. 1692 et seq.). 10 ‘‘(10) The Electronic Fund Transfer Act (15 11 U.S.C. 1693 et seq.). 12 ‘‘(11) The Interstate Land Sales Full Disclo- 13 sure Act (15 U.S.C. 1701 et seq.). 14 ‘‘(12) The Consumer Product Safety Act (15 15 U.S.C. 2051 et seq.). 16 ‘‘(13) The Magnuson-Moss Warranty-Federal 17 Trade Commission Improvement Act (15 U.S.C. 18 2301 et seq.). 19 ‘‘(14) The Servicemembers Civil Relief Act (50 20 U.S.C. 3901 et seq.). 21 ‘‘(15) Any provision of Federal law prohibiting 22 unfair or deceptive trade or credit practices. 23 VerDate Sep 11 2014 04:57 Jun 24, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3913.IS S3913 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3913 IS ‘‘(16) Any provision of Federal, State, or local 1 law, or common law claims permitted under Federal, 2 State, or local law— 3 ‘‘(A) providing for the enforcement of con- 4 sumer protection, or 5 ‘‘(B) regulating any aspect of consumer 6 transactions, including claims for unfair, decep- 7 tive, or abusive trade or credit practices, or for 8 other actions that cause harm to an individual 9 by a seller or provider of property, services, se- 10 curities or other investments, money, or credit 11 for personal, family, or household use.’’. 12 (c) EFFECTIVE DATE.—The amendments made by 13 this section shall apply to attorney fees and court costs 14 paid during taxable years ending after the date of the en- 15 actment of this Act with respect to any judgment or settle- 16 ment occurring during such taxable years. 17 Æ VerDate Sep 11 2014 04:57 Jun 24, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S3913.IS S3913 kjohnson on DSK79L0C42PROD with BILLS