What does Preamble of Tax the Grift Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would impose a tax on payments received from settlement funds. These settlement funds must be established as a result of a civil action. The civil action must be filed by the President of the United States. The civil action must be against the Internal Revenue Service.

What does SHORT TITLE. of Tax the Grift Act do?

This Act is formally titled the 'Tax the Grift Act'.

What does IMPOSITION OF TAX ON QUALIFIED SETTLEMENT FUND PAYMENTS. of Tax the Grift Act do?

This section amends Subtitle D of the Internal Revenue Code of 1986 by adding Chapter 50B, concerning qualified settlement fund payments. It imposes a 100 percent tax on any taxpayer receiving a qualified settlement fund payment during a taxable year. A 'qualified settlement fund payment' is defined as an amount received from a fund established as a result of a civil action filed by the President of the United States against the Internal Revenue Service. For purposes of subtitle F, the tax imposed by this section is treated as a tax imposed by subtitle A. Qualified settlement fund payments are excluded from a taxpayer's gross income. Section 275(a)(6) of the Internal Revenue Code is amended to include '50B' after '50A'. The table of chapters for subtitle D is amended to include 'Chapter 50B--Qualified Settlement Fund Payments.' The amendments apply to amounts received after the date of enactment of this Act.

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Tax the Grift Act

Last updated: 5/29/2026 · Introduced: 5/29/2026

Author: Mark Pocan (D-WI)

TL;DR (AI)

This bill establishes a 100% tax on payments received from settlement funds resulting from civil actions filed by the President against the Internal Revenue Service.
The bill excludes payments from these qualified settlement funds from a taxpayer's gross income.
This legislation amends the Internal Revenue Code to formally add Chapter 50B, which defines and governs qualified settlement fund payments.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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