Some states have enacted legislation to compensate victims of forced, involuntary, or coerced sterilization under state programs and have made payments to those victims pursuant to the legislation (compensation payments for forced sterilization). According to IRS FAQs (FS-2023-11, April 2023) compensation payments for forced sterilization are excluded from the gross income of the recipients for federal income tax purposes because the payments are compensatory damages for physical injuries under section 104(a)(2) of the Internal Revenue Code.