S. 467 — End Double Taxation of Successful Consumer Claims Act

This section expands the above-the-line deduction under IRC §62(a)(20)—previously available only for attorney fees and court costs related to Medicare secondary payer claims—to also include such fees and costs paid in connection with claims of consumer protection violations. It defines consumer protection violations as acts unlawful under 16 specified federal laws (e.g., 10 U.S.C. 987 [limiting consumer credit interest rates for servicemembers to 36%], Truth in Lending Act, Fair Debt Collection Practices Act) or other federal, state, or local laws or common law claims enforcing consumer protections or regulating consumer transactions; the provision applies to amounts paid during taxable years ending after enactment with respect to judgments or settlements in such years.