H.R.3512

The Tackling Predatory Litigation Funding Act imposes a tax on income from litigation received by third-party entities that provided financing for.

The Tackling Predatory Litigation Funding Act amends the Internal Revenue Code to establish a tax on income from litigation received by third-party entities that provided financing for such litigation. The tax applies to any qualified litigation proceeds received by a covered party, which is defined as any third party to a civil action that receives funds pursuant to a litigation financing agreement and is not an attorney representing a party to the action. The tax is equal to the sum of the highest rate of tax imposed by section 1 for the taxable year, plus 3.8 percentage points.