119-s467

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 467 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 467

 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

 February 6 (legislative day, February 5), 2025

 Ms. Cortez Masto (for herself, Mrs. Murray, Mrs. Shaheen, Mr. Kaine, 
 Mr. Bennet, and Mr. Booker) 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``End Double Taxation of Successful 
Consumer Claims Act''.

SEC. 2. ABOVE-THE-LINE DEDUCTION FOR ATTORNEY FEES AND COSTS IN 
 CONNECTION WITH CONSUMER CLAIM AWARDS.

    (a) In General.--The first sentence of paragraph

    (20) of 

section 62

    (a) of the Internal Revenue Code of 1986 is amended by inserting ``or 
a claim of a consumer protection violation (as defined in subsection

    (f) )'' after ``

section 1862

    (b)

    (3)
        (A) of the Social Security Act (42 
U.S.C. 1395y

    (b)

    (3)
        (A) )''.

    (b) Consumer Protection Violation Defined.--

Section 62 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
 ``

    (f) Consumer Protection Violation Defined.--For purposes of 
subsection

    (a)

    (20) , the term `consumer protection violation' means an 
act that is unlawful under any of the following:
 ``

    (1) Section 987 of title 10, United States Code.
 ``

    (2) Section 6, 8, or 9 of the Real Estate Settlement 
 Procedures Act of 1974 (12 U.S.C. 2605, 2607, or 2608).
 ``

    (3) The Expedited Funds Availability Act (12 U.S.C. 4001 
 et seq.).
 ``

    (4) The Homeowners Protection Act of 1998 (12 U.S.C. 4901 
 et seq.).
 ``

    (5) The Truth in Lending Act (15 U.S.C. 1601 et seq.).
 ``

    (6) The Credit Repair Organizations Act (15 U.S.C. 1679 
 et seq.).
 ``

    (7) The Fair Credit Reporting Act (15 U.S.C. 1681 et 
 seq.).
 ``

    (8) The Equal Credit Opportunity Act (15 U.S.C. 1691 et 
 seq.).
 ``

    (9) The Fair Debt Collection Practices Act (15 U.S.C. 
 1692 et seq.).
 ``

    (10) The Electronic Fund Transfer Act (15 U.S.C. 1693 et 
 seq.).
 ``

    (11) The Interstate Land Sales Full Disclosure Act (15 
 U.S.C. 1701 et seq.).
 ``

    (12) The Consumer Product Safety Act (15 U.S.C. 2051 et 
 seq.).
 ``

    (13) The Magnuson-Moss Warranty-Federal Trade Commission 
 Improvement Act (15 U.S.C. 2301 et seq.).
 ``

    (14) The Servicemembers Civil Relief Act (50 U.S.C. 3901 
 et seq.).
 ``

    (15) Any provision of Federal law prohibiting unfair or 
 deceptive trade or credit practices.
 ``

    (16) Any provision of Federal, State, or local law, or 
 common law claims permitted under Federal, State, or local 
 law--
 ``
        (A) providing for the enforcement of consumer 
 protection, or
 ``
        (B) regulating any aspect of consumer 
 transactions, including claims for unfair, deceptive, 
 or abusive trade or credit practices, or for other 
 actions that cause harm to an individual by a seller or 
 provider of property, services, securities or other 
 investments, money, or credit for personal, family, or 
 household use.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to attorney fees and court costs paid during taxable years ending 
after the date of the enactment of this Act with respect to any 
judgment or settlement occurring during such taxable years.
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