[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 986 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 986

To amend the Internal Revenue Code of 1986 to provide that the Federal 
income tax shall not apply to United States citizens who are killed in 
  terroristic actions directed at the United States or to parents of 
         children who are killed in those terroristic actions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 29 (legislative day, June 19), 1995

 Mr. D'Amato (for himself, Mr. Moynihan, Mr. Nickles, and Mr. Inhofe) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the Federal 
income tax shall not apply to United States citizens who are killed in 
  terroristic actions directed at the United States or to parents of 
         children who are killed in those terroristic actions.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCOME TAX NOT TO APPLY TO UNITED STATES CITIZENS KILLED BY 
              TERRORISTIC ACTIONS AGAINST THE UNITED STATES OR THEIR 
              PARENTS IN THE CASE OF MINOR CHILDREN.

    (a) Application to All United States Citizens and Parents of Minor 
Children.--Section 692(c) of the Internal Revenue Code of 1986 
(relating to taxation of the United States employees dying as a result 
of injuries sustained overseas) is amended by redesignating paragraphs 
(2) and (3) as paragraphs (3) and (4) and by inserting after paragraph 
(1) the following new paragraph:
            ``(2) Extension to all citizens and parents of minor 
        children.--Paragraph (1) shall also apply to--
                    ``(A) a citizen of the United States who dies as a 
                result of wounds or injury incurred in a terroristic 
                action described in paragraph (3)(A) in which the 
                individual was not a participant, and
                    ``(B) if the individual described in subparagraph 
                (A) has not attained the age of 19 prior to death, the 
                parent of the individual, but only for the taxable year 
                of the parent in which the individual died and only if 
                the parent is allowed a deduction under section 151 for 
                the individual for the taxable year (without regard to 
                this subsection).''
    (b) Extension to Actions Within the United States.--Paragraph (1) 
of section 692(c) of the Internal Revenue Code of 1986 (relating to 
taxation of United States employees dying as a result of injuries 
sustained overseas) is amended by striking ``outside the United 
States''.
    (c) Conforming Amendments.--
            (1) Paragraph (4) of section 692(c) of the Internal Revenue 
        Code of 1986, as redesignated by subsection (a), is amended by 
        striking ``paragraph (2)'' and inserting ``paragraph (3)''.
            (2) The heading for section 692(c) of such Code is amended 
        to read as follows:
    ``(c) Certain Individuals Dying as a Result of Terroristic or 
Military Actions.--''
    (d) Effective Date.--The amendments made by this section shall 
apply to individuals dying after December 31, 1992.
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