Establishes a tax on income from litigation received by third-party entities that provided financing for such litigation.

The Tackling Predatory Litigation Funding Act amends the Internal Revenue Code to impose a tax on income from litigation received by third-party entities that provided financing for such litigation. This tax applies to any qualified litigation proceeds received by a covered party, defined as any third party to a civil action that receives funds pursuant to a litigation financing agreement. 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.

Establishes a tax on income from litigation received by third-party entities that provided financing for such litigation.

The Tackling Predatory Litigation Funding Act amends the Internal Revenue Code to impose a tax on income from litigation received by third-party entities that provided financing for such litigation. This tax applies to any qualified litigation proceeds received by a covered party, defined as any third party to a civil action that receives funds pursuant to a litigation financing agreement. 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.