[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6602 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6602

   To provide for the use of amended income tax returns to take into 
 account receipt of certain hurricane-related casualty loss grants by 
         disallowing previously taken casualty loss deductions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2008

 Mr. Scalise introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To provide for the use of amended income tax returns to take into 
 account receipt of certain hurricane-related casualty loss grants by 
         disallowing previously taken casualty loss deductions.

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

SECTION 1. USE OF AMENDED INCOME TAX RETURNS TO TAKE INTO ACCOUNT 
              RECEIPT OF CERTAIN HURRICANE-RELATED CASUALTY LOSS GRANTS 
              BY DISALLOWING PREVIOUSLY TAKEN CASUALTY LOSS DEDUCTIONS.

    (a) In General.--Notwithstanding any other provision of the 
Internal Revenue Code of 1986, if a taxpayer claims a deduction for any 
taxable year with respect to a casualty loss to a principal residence 
(within the meaning of section 121 of such Code) resulting from 
Hurricane Katrina, Hurricane Rita, or Hurricane Wilma and in a 
subsequent taxable year receives a grant under Public Law 109-148, 109-
234, or 110-116 as reimbursement for such loss, such taxpayer may elect 
to file an amended income tax return for the taxable year in which such 
deduction was allowed (and for any taxable year to which such deduction 
is carried) and reduce (but not below zero) the amount of such 
deduction by the amount of such reimbursement.
    (b) Time of Filing Amended Return.--Subsection (a) shall apply with 
respect to any grant only if any amended income tax returns with 
respect to such grant are filed not later than the later of--
            (1) the due date for filing the tax return for the taxable 
        year in which the taxpayer receives such grant, or
            (2) the date which is 1 year after the date of the 
        enactment of this Act.
    (c) Waiver of Penalties and Interest.--Any underpayment of tax 
resulting from the reduction under subsection (a) of the amount 
otherwise allowable as a deduction shall not be subject to any penalty 
or interest under such Code if such tax is paid not later than 1 year 
after the filing of the amended return to which such reduction relates.
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