To amend the Internal Revenue Code of 1986 to provide tax relief for military or civilian employees of the United States who are victims of terrorist attacks against the United States. (Introduced in the Senate)

S 1423 IS

107th CONGRESS

1st Session

S. 1423

To amend the Internal Revenue Code of 1986 to provide tax relief for military or civilian employees of the United States who are victims of terrorist attacks against the United States.

IN THE SENATE OF THE UNITED STATES

September 13, 2001

Mr. BUNNING introduced the following bill; which was read twice and referred to the Committee on Finance

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A BILL

To amend the Internal Revenue Code of 1986 to provide tax relief for military or civilian employees of the United States who are victims of terrorist attacks against the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. INCOME TAXES OF UNITED STATES MILITARY AND CIVILIAN EMPLOYEES WHO ARE VICTIMS OF TERRORIST ATTACKS.

(a) IN GENERAL- Section 692(c) of the Internal Revenue Code of 1986 (relating to income taxes of military or civilian employees of the United States dying as a result of injuries sustained overseas) is amended by striking `outside the United States'.

(b) CONFORMING AMENDMENT- The heading of section 692(c) of such Code is amended by striking `OVERSEAS' and inserting `AS A RESULT OF TERRORISTIC OR MILITARY ACTION'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years ending on or after September 11 , 2001.

SEC. 2. RELIEF FROM ADDITIONAL ESTATE TAX.

(a) IN GENERAL- Section 2201 of the Internal Revenue Code of 1986 is amended--

(1) in the first sentence by inserting `(a) IN GENERAL- ' before `The additional estate tax', and

(2) by adding at the end the following:

`(b) UNITED STATES MILITARY OR CIVILIAN EMPLOYEES WHO ARE VICTIMS OF CERTAIN TERRORIST ATTACKS- The additional estate tax shall not apply to the transfer of the taxable estate of any individual dying while in active service as a military or civilian employee of the United States if such decedent dies as a result of wounds or injuries incurred in a terroristic or military action (as defined in section 692(c)(2)). The preceding sentence shall not apply with respect to any individual whom the Secretary determines was a perpetrator of any such terrorist attack.'.

(b) CLERICAL AMENDMENTS-

(1) The heading of section 2201 of such Code is amended to read as follows:

`SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE ARMED FORCES AND DEATHS OF VICTIMS OF CERTAIN TERRORIST ATTACKS.'.

(2) The item relating to section 2201 in the table of sections for subchapter C of chapter 11 of such Code is amended to read as follows:

`Sec. 2201. Combat zone-related deaths of members of the Armed Forces and deaths of victims of certain terrorist attacks.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to estates of decedents dying on or after September 11 , 2001.