[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2004 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2004

 To amend the Internal Revenue Code of 1986 to authorize the Secretary 
    of the Treasury to abate the accrual of interest on income tax 
underpayments by taxpayers located in Presidentially declared disaster 
areas if the Secretary extends the time for filing returns and payment 
                       of tax for such taxpayers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 1998

   Mr. Grams (for himself, Mr. Coverdell, Mr. Frist, Mr. McCain, Mr. 
     Hutchinson, Mr. Smith of Oregon, Mr. Graham, and Mr. D'Amato) 
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 authorize the Secretary 
    of the Treasury to abate the accrual of interest on income tax 
underpayments by taxpayers located in Presidentially declared disaster 
areas if the Secretary extends the time for filing returns and payment 
                       of tax for such taxpayers.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Victim Tax Extension Act of 
1998''.

SEC. 2. ABATEMENT OF INTEREST ON UNDERPAYMENTS BY TAXPAYERS IN 
              PRESIDENTIALLY DECLARED DISASTER AREAS.

    (a) In General.--Section 6404 of the Internal Revenue Code of 1986 
(relating to abatements) is amended by adding at the end the following:
    ``(h) Abatement of Interest on Underpayments by Taxpayers in 
Presidentially Declared Disaster Areas.--
            ``(1) In general.--If the Secretary extends for any period 
        the time for filing income tax returns under section 6081 and 
        the time for paying income tax with respect to such returns 
        under section 6161 for any taxpayer located in a Presidentially 
        declared disaster area, the Secretary shall abate for such 
        period the assessment of any interest prescribed under section 
        6601 on such income tax.
            ``(2) Presidentially declared disaster area.--For purposes 
        of paragraph (1), the term `Presidentially declared disaster 
        area' means, with respect to any taxpayer, any area which the 
        President has determined warrants assistance by the Federal 
        Government under the Disaster Relief and Emergency Assistance 
        Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters declared after December 31, 1996, with respect to taxable 
years beginning after December 31, 1996.
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