SLUSH FUND Act of 2026

Increased Transparency: The bill requires fiduciaries to provide written statements to taxpayers and mandates that the Secretary make the filed returns publicly available (Section 3(a)).

Penalty for Tax Evasion: A penalty of 50 percent of the tax is imposed on any taxpayer who willfully fails to pay the tax or attempts to evade it (Section 2(c)).

Penalty for Failure to Report: Fiduciaries who fail to file required returns may be required to pay $10,000 for each failure (Section 3(b)).

High Tax Rate: A tax equal to 100 percent is imposed on any specified settlement fund payment received by a taxpayer (Section 2(a)).

Financial Burden on Fiduciaries: Trustees, administrators, or other fiduciaries face a $10,000 penalty for failing to file required returns, unless there is reasonable cause (Section 3(b)).

Public Exposure of Financial Information: The Secretary is required to make the returns containing the aggregate amount of payments and the name and address of the taxpayer publicly available (Section 3(a)).