Stop Presidential Embezzlement Act

Summary

Creates a new tax rule that changes how damages paid to the President from civil lawsuits against the United States are treated for federal income tax purposes. It also amends the list of disallowed tax items to reflect the new rule and applies to amounts received after the law takes effect.

• Creates a new Subtitle D chapter in the Internal Revenue Code that addresses tax treatment of damages received by the President from civil suits against the United States.
• Amends 26 U.S.C. § 275(a)(6) to add a new disallowed tax item related to the above change.
• Applies to amounts received after the date of enactment; no retroactive effect is indicated.
• Makes a clerical update to the Subtitle D table of chapters by inserting the new chapter after chapter 50A.
• Does not authorize new spending or create new federal programs; its primary effect is a change to federal tax law.
• Practical enforcement would be through existing IRS rules for income inclusion and deduction disallowance.
• Exact statutory wording for the new tax treatment and the §275 amendment was not provided, limiting precise interpretation.
• Scope is narrow and specifically targets damages involving the President and the United States, not general damages to other taxpayers.