,,ii #aac? ,,congress #a/ ,session ,s4 #abbd ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #bf1 #bjac ,mr4 ,c>d9 7= himself & ,ms4 ,coll9s7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to exclude f gross income am\nts receiv$ on acc\nt ( claims bas$ on c]ta9 unlawful discrim9ation & to all[ income av]ag+ = backpay & frontpay aw>ds receiv$ on acc\nt ( su* claims1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,civil ,ju/ice ,tax ,fairness ,act ( #bjac4 #b4 ,exclusion f gross income = am\nts receiv$ on acc\nt ( c]ta9 unlawful discrim9ation 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to items specifically exclud$ f gross income7 is am5d$ by ins]t+ be=e section #adj ! foll[+ new section3 #aci;,e4 ,am\nts receiv$ on acc\nt ( c]ta9 unlawful discrim9ation 7a7 ,9 g5]al 7#a7 ,exclusion ,gross income does n include am\nts receiv$ by a claimant 7:e!r by judgm5t or settlem5t & :e!r z lump sums or p]iodic paym5ts7 on acc\nt ( a claim ( unlawful discrim9ation4 7#b7 ,am\nts cov]$ ,= purposes ( p>agraph 7#a71 ! t]m am\nts does n include-- 7,a7 backpay or frontpay1 z def9$ 9 section #acjb7;b71 or 7,b7 punitive damages4 7b7 ,unlawful discrim9ation def9$ ,= purposes ( ?is section1 ! t]m unlawful discrim9ation has ! mean+ giv5 su* t]m by section #fb7;e74 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ be=e ! item relat+ to section #adj ! foll[+ new item3 ,sec4 #aci;,e4 ,am\nts receiv$ on acc\nt ( c]ta9 unlawful discrim9ation4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts receiv$ 9 taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjab4 #c4 ,limitation on tax bas$ on income av]ag+ = backpay & frontpay receiv$ on acc\nt ( c]ta9 unlawful employm5t discrim9ation 7a7 ,9 g5]al ,"p ,i ( sub*apt] ,q ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to income av]ag+7 is am5d$ by add+ at ! end ! foll[+ new section3 #acjb4 ,income f backpay & frontpay receiv$ on acc\nt ( c]ta9 unlawful employm5t discrim9ation 7a7 ,g5]al rule ,if employm5t discrim9ation backpay or frontpay is receiv$ by a taxpay] dur+ a taxable ye>1 ! tax impos$ by ?is *apt] = su* taxable ye> %all n exce$ ! sum (-- 7#a7 ! tax :i* w\ld be s impos$ if-- 7,a7 no am\nt ( su* backpay or frontpay 7 includ$ 9 gross income = su* ye>1 & 7,b7 no d$uction 7 all[$ = su* ye> = exp5ses 7o!rwise all[able z a d$uction to ! taxpay] = su* ye>7 9 connection ) mak+ or prosecut+ any claim ( unlawful employm5t discrim9ation by or on behalf ( ! taxpay]1 plus 7#b7 ! product (-- 7,a7 ! numb] ( ye>s 9 ! backpay p]iod & frontpay p]iod1 & 7,b7 ! am\nt by :i* ! tax det]m9$ "u p>agraph 7#a7 w\ld increase if ! am\nt on :i* su* tax is det]m9$ 7 increas$ by ! av]age annual net backpay & frontpay am\nt4 7b7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,employm5t discrim9ation backpay or frontpay ,! t]m employm5t discrim9ation backpay or frontpay means backpay or frontpay receivable 7:e!r z lump sums or p]iodic paym5ts7 on acc\nt ( a claim ( unlawful employm5t discrim9ation4 7#b7 ,unlawful employm5t discrim9ation ,! t]m unlawful employm5t discrim9ation has ! mean+ provid$ ! t]m unlawful discrim9ation 9 section #fb7;e74 7#c7 ,backpay & frontpay ,! t]ms backpay & frontpay mean am\nts-- 7,a7 :i* are includible 9 gross income 9 ! taxable ye> z comp5sation :i* is attributable-- 7i7 9 ! case ( backpay1 to s]vices p]=m$1 or t w\ld h be5 p]=m$ b = a claim$ violation ( law1 z an employee1 =m] employee1 or prospective employee be=e su* taxable ye> = ! taxpay]'s employ]1 =m] employ]1 or prospective employ]1 & 7ii7 9 ! case ( frontpay1 to employm5t t w\ld h be5 p]=m$ b = a claim$ violation ( law1 9 a taxable ye> or taxable ye>s foll[+ ! taxable ye>1 & 7,b7 :i* are receiv$ on acc\nt ( a judgm5t or settlem5t result+ f a claim = a violation ( law4 7#d7 ,backpay p]iod ,! t]m backpay p]iod means ! p]iod dur+ :i* s]vices are p]=m$ 7or w\ld h be5 p]=m$7 to :i* backpay is attributable4 ,if su* p]iod is n equal to a :ole numb] ( taxable ye>s1 su* p]iod %all be increas$ to ! next highe/ numb] ( :ole taxable ye>s4 7#e7 ,frontpay p]iod ,! t]m frontpay p]iod means ! p]iod ( =egone employm5t to :i* frontpay is attributable4 ,if su* p]iod is n equal to a :ole numb] ( taxable ye>s1 su* p]iod %all be increas$ to ! next highe/ numb] ( :ole taxable ye>s4 7#f7 ,av]age annual net backpay & frontpay am\nt ,! t]m av]age annual net backpay & frontpay am\nt means ! am\nt equal to-- 7,a7 ! excess (-- 7i7 employm5t discrim9ation backpay & frontpay1 ov] 7ii7 ! am\nt ( d$uctions t w\ld h be5 all[able b = subsection 7a77#a77;,b71 divid$ by 7,b7 ! numb] ( ye>s 9 ! backpay p]iod & frontpay p]iod4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,i ( sub*apt] ,q ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #acja ! foll[+ new item3 ,sec4 #acjb4 ,income f backpay & frontpay receiv$ on acc\nt ( c]ta9 unlawful employm5t discrim9ation4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts receiv$ 9 taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjab4 #d4 ,income av]ag+ = backpay & frontpay receiv$ on acc\nt ( c]ta9 unlawful employm5t discrim9ation n to increase alt]native m9imum tax liability 7a7 ,9 g5]al ,section #ee7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7def9+ regul> tax7 is am5d$ by r$esignat+ p>agraph 7#c7 z p>agraph 7#d7 & by ins]t+ aft] p>agraph 7#b7 ! foll[+3 7#c7 ,coord9ation ) income av]ag+ = am\nts receiv$ on acc\nt ( employm5t discrim9ation ,solely = purposes ( ?is section1 section #acjb 7relat+ to av]ag+ ( income f backpay or frontpay receiv$ on acc\nt ( c]ta9 unlawful employm5t discrim9ation7 %all n apply 9 comput+ ! regul> tax4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjab4