[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1423 Introduced in Senate (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

_______________________________________________________________________

                                 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.
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