[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 84 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 84

 To amend the Internal Revenue Code of 1986 to provide exemptions from 
 taxation with respect to public safety officers killed in the line of 
                                 duty.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

  Mr. Bunning 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 exemptions from 
 taxation with respect to public safety officers killed in the line of 
                                 duty.

    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 ``Fallen Heroes Act''.

SEC. 2. EXEMPTIONS FROM TAXATION WITH RESPECT TO PUBLIC SAFETY OFFICERS 
              KILLED IN THE LINE OF DUTY.

    (a) Exemption From Income and Estate and Gift Tax.--
            (1) In general.--Chapter 77 of the Internal Revenue Code of 
        1986 (relating to miscellaneous provisions) is amended by 
        adding at the end the following new section:

``SEC. 7527. PUBLIC SAFETY OFFICERS KILLED IN THE LINE OF DUTY.

    ``(a) In General.--In the case of an individual who at the time of 
death is a public safety officer killed in the line of duty--
            ``(1) any tax imposed by subtitle A shall not apply with 
        respect to the taxable year in which falls the date of the 
        death of such individual,
            ``(2) any tax under subtitle A which is unpaid at the date 
        of the death of such individual (including interest, additions 
        to the tax, and additional amounts) shall not be assessed, and 
        if assessed the assessment shall be abated, and if collected 
        shall be credited or refunded as an overpayment,
            ``(3) any tax imposed by chapter 11 shall not apply with 
        respect to the estate of such individual,
            ``(4) any tax imposed by chapter 12 on the transfer of 
        property by gift by such individual during the calendar year in 
        which falls the date of the death of such individual shall not 
        apply, and
            ``(5) any tax imposed by chapter 13 on a generation-
        skipping transfer by such individual shall not apply.
    ``(b) Exceptions.--For purposes of subsection (a), rules similar to 
the rules of paragraph (2) of section 101(h) shall apply.
    ``(c) Public Safety Officer.--For purposes of subsection (a), the 
term `public safety officer' has the meaning given such term by section 
101(h).''.
            (2) Clerical amendment.--The table of sections for chapter 
        77 of such Code is amended by inserting after the item relating 
        to section 7526 the following new item:

                              ``Sec. 7527. Public safety officers 
                                        killed in the line of duty.''.
    (b) Exemptions for Retirement and Survivor Benefits.--So much of 
subsection (h) of section 101 of such Code as precedes paragraph (2) is 
amended to read as follows:
    ``(h) Distributions From Retirement Plan of Public Safety Officer 
Who is Killed in the Line of Duty.--
            ``(1) In general.--Gross income shall not include any 
        distribution from a pension, annuity, retirement, bonus, or 
        profit sharing plan on account of the death of an individual 
        who, at the time of death, is a public safety officer (as such 
        term is defined in section 1204 of the Omnibus Crime Control 
        and Safe Streets Act of 1968) killed in the line of duty.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to deaths occurring after the date of enactment of 
this Act.
                                 <all>