[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2824 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2824

To amend the Internal Revenue Code of 1986 to provide for the treatment 
 of single sum deferred compensation payments received by survivors of 
                       terrorist attack victims.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2002

Mr. Kerry (for himself and Mr. Kennedy) 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 for the treatment 
 of single sum deferred compensation payments received by survivors of 
                       terrorist attack victims.

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

SECTION 1. TREATMENT OF SINGLE SUM DEFERRED COMPENSATION PAYMENTS 
              RECEIVED BY SURVIVORS OF TERRORIST ATTACK VICTIMS.

    (a) In General.--Section 1 of the Internal Revenue Code of 1986 
(relating to tax imposed) is amended by adding at the end the following 
new subsection:
    ``(j) Treatment of Single Sum Deferred Compensation Payments 
Received by Survivors of Terrorist Attack Victims.--
            ``(1) In general.--If a taxpayer receives a single sum 
        payment of compensation from the employer of an employee who is 
        a specified terrorist victim for any taxable year, the tax 
        imposed by this section for such taxable year shall not exceed 
        the sum of--
                    ``(A) a tax computed at the rates and in the same 
                manner as if this subsection had not been enacted on 
                taxable income reduced by the amount of such payment, 
                and
                    ``(B) the taxpayer's applicable marginal rate for 
                such taxable year times the amount of such payment.
            ``(2) Specified terrorist victim.--For purposes of this 
        subsection, the term `specified terrorist victim' has the 
        meaning given such term by section 692(d)(4).
            ``(3) Applicable marginal rate.--For purposes of this 
        subsection, the term `applicable marginal rate' means, for any 
        taxable year, the greater of--
                    ``(A) the highest rate of tax used in computing the 
                tax described in paragraph (1)(A), or
                    ``(B) 15 percent.''.
    (b) Effective Date; Waiver of Limitations.--
            (1) Effective date.--The amendment made by this section 
        shall apply to taxable years ending before, on, or after 
        September 11, 2001.
            (2) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the amendment made by this 
        section is prevented at any time before the close of the 1-year 
        period beginning on the date of the enactment of this Act by 
        the operation of any law or rule of law (including res 
        judicata), such refund or credit may nevertheless be made or 
        allowed if claim therefor is filed before the close of such 
        period.
                                 <all>