Home > 107th Congressional Public Laws > Pub.L. 107-135 To amend title 38, United States Code, to enhance the authority of the ...Pub.L. 107-135 To amend title 38, United States Code, to enhance the authority of the ...
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[[Page 115 STAT. 2427]]
Public Law 107-134
107th Congress
An Act
To amend the Internal Revenue Code of 1986 to provide tax relief for
victims of the terrorist attacks against the United States, and for
other purposes. <<NOTE: Jan. 23, 2002 - [H.R. 2884]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Victims of
Terrorism Tax Relief Act of 2001.>>
SECTION 1. SHORT TITLE; ETC.
(a) <<NOTE: 26 USC 1 note.>> Short Title.--This Act may be cited as
the ``Victims of Terrorism Tax Relief Act of 2001''.
(b) Amendment of 1986 Code.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--VICTIMS OF TERRORISM TAX RELIEF
Subtitle A--Relief Provisions for Victims of Terrorist Attacks
Sec. 101. Income taxes of victims of terrorist attacks.
Sec. 102. Exclusion of certain death benefits.
Sec. 103. Estate tax reduction.
Sec. 104. Payments by charitable organizations treated as exempt
payments.
Sec. 105. Exclusion of certain cancellations of indebtedness.
Subtitle B--Other Relief Provisions
Sec. 111. Exclusion for disaster relief payments.
Sec. 112. Authority to postpone certain deadlines and required actions.
Sec. 113. Application of certain provisions to terroristic or military
actions.
Sec. 114. Clarification of due date for airline excise tax deposits.
Sec. 115. Treatment of certain structured settlement payments.
Sec. 116. Personal exemption deduction for certain disability trusts.
TITLE II--DISCLOSURE OF TAX INFORMATION IN TERRORISM AND NATIONAL
SECURITY INVESTIGATIONS
Sec. 201. Disclosure of tax information in terrorism and national
security investigations.
TITLE III--NO IMPACT ON SOCIAL SECURITY TRUST FUNDS
Sec. 301. No impact on social security trust funds.
[[Page 115 STAT. 2428]]
TITLE I--VICTIMS OF TERRORISM TAX RELIEF
Subtitle A--Relief Provisions for Victims of Terrorist Attacks
SEC. 101. INCOME TAXES OF VICTIMS OF TERRORIST ATTACKS.
(a) In General.--Section 692 <<NOTE: 26 USC 692.>> (relating to
income taxes of members of Armed Forces on death) is amended by adding
at the end the following new subsection:
``(d) Individuals Dying as a Result of Certain Attacks.--
``(1) In general.--In the case of a specified terrorist
victim, any tax imposed by this chapter shall not apply--
``(A) with respect to the taxable year in which
falls the date of death, and
``(B) with respect to any prior taxable year in the
period beginning with the last taxable year ending
before the taxable year in which the wounds, injury, or
illness referred to in paragraph (3) were incurred.
``(2) $10,000 minimum benefit.--If, but for this paragraph,
the amount of tax not imposed by paragraph (1) with respect to a
specified terrorist victim is less than $10,000, then such
victim shall be treated as having made a payment against the tax
imposed by this chapter for such victim's last taxable year in
an amount equal to the excess of $10,000 over the amount of tax
not so imposed.
``(3) Taxation of certain benefits.--Subject to such rules
as the Secretary may prescribe, paragraph (1) shall not apply to
the amount of any tax imposed by this chapter which would be
computed by only taking into account the items of income, gain,
or other amounts attributable to--
``(A) deferred compensation which would have been
payable after death if the individual had died other
than as a specified terrorist victim, or
``(B) amounts payable in the taxable year which
would not have been payable in such taxable year but for
an action taken after September 11, 2001.
``(4) Specified terrorist victim.--For purposes of this
subsection, the term `specified terrorist victim' means any
decedent--
``(A) who dies as a result of wounds or injury
incurred as a result of the terrorist attacks against
the United States on April 19, 1995, or September 11,
2001, or
``(B) who dies as a result of illness incurred as a
result of an attack involving anthrax occurring on or
after September 11, 2001, and before January 1, 2002.
Such term shall not include any individual identified by the
Attorney General to have been a participant or conspirator in
any such attack or a representative of such an individual.''.
(b) Conforming Amendments.--
(1) Section 5(b)(1) is amended by inserting ``and victims of
certain terrorist attacks'' before ``on death''.
(2) Section 6013(f)(2)(B) is amended by inserting ``and
victims of certain terrorist attacks'' before ``on death''.
(c) Clerical Amendments.--
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(1) The heading of section 692 <<NOTE: 26 USC 692.>> is
amended to read as follows:
``SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES AND VICTIMS OF
CERTAIN TERRORIST ATTACKS ON DEATH.''.
(2) The item relating to section 692 in the table of
sections for part II of subchapter J of chapter 1 is amended to
read as follows:
``Sec. 692. Income taxes of members of Armed Forces and
victims of certain terrorist attacks on
death.''.
(d) <<NOTE: 26 USC 692 note.>> Effective Date; Waiver of
Limitations.--
(1) <<NOTE: Applicability.>> Effective date.--The amendments
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 amendments 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.
SEC. 102. EXCLUSION OF CERTAIN DEATH BENEFITS.
(a) In General.--Section 101 (relating to certain death benefits) is
amended by adding at the end the following new subsection:
``(i) Certain Employee Death Benefits Payable by Reason of Death of
Certain Terrorist Victims.--
``(1) In general.--Gross income does not include amounts
(whether in a single sum or otherwise) paid by an employer by
reason of the death of an employee who is a specified terrorist
victim (as defined in section 692(d)(4)).
``(2) Limitation.--
``(A) In general.--Subject to such rules as the
Secretary may prescribe, paragraph (1) shall not apply
to amounts which would have been payable after death if
the individual had died other than as a specified
terrorist victim (as so defined).
``(B) Exception.--Subparagraph (A) shall not apply
to incidental death benefits paid from a plan described
in section 401(a) and exempt from tax under section
501(a).
``(3) Treatment of self-employed individuals.--For purposes
of paragraph (1), the term `employee' includes a self-employed
individual (as defined in section 401(c)(1)).''.
(b) <<NOTE: 26 USC 101 note.>> Effective Date; Waiver of
Limitations.--
(1) <<NOTE: Applicability.>> 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 amendments 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.
[[Page 115 STAT. 2430]]
SEC. 103. ESTATE TAX REDUCTION.
(a) In General.--Section 2201 <<NOTE: 26 USC 2201.>> 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.
``(a) In General.--Unless the executor elects not to have this
section apply, in applying sections 2001 and 2101 to the estate of a
qualified decedent, the rate schedule set forth in subsection (c) shall
be deemed to be the rate schedule set forth in section 2001(c).
``(b) Qualified Decedent.--For purposes of this section, the term
`qualified decedent' means--
``(1) any citizen or resident of the United States dying
while in active service of the Armed Forces of the United
States, if such decedent--
``(A) was killed in action while serving in a combat
zone, as determined under section 112(c), or
``(B) died as a result of wounds, disease, or injury
suffered while serving in a combat zone (as determined
under section 112(c)), and while in the line of duty, by
reason of a hazard to which such decedent was subjected
as an incident of such service, and
``(2) any specified terrorist victim (as defined in section
692(d)(4)).
``(c) Rate Schedule.--
``If the amount with respeThe tentative tax is:
which the tentative tax to
be computed is:
Not over $150,000.....1 percent of the amount by which such amount
exceeds $100,000.
Over $150,000 but not $500 plus 2 percent of the excess over
$200,000. $150,000.
Over $200,000 but not $1,500 plus 3 percent of the excess over
$300,000. $200,000.
Over $300,000 but not $4,500 plus 4 percent of the excess over
$500,000. $300,000.
Over $500,000 but not $12,500 plus 5 percent of the excess over
$700,000. $500,000.
Over $700,000 but not $22,500 plus 6 percent of the excess over
$900,000. $700,000.
Over $900,000 but not $34,500 plus 7 percent of the excess over
$1,100,000. $900,000.
Over $1,100,000 but no$48,500 plus 8 percent of the excess over
$1,600,000. $1,100,000.
Over $1,600,000 but no$88,500 plus 9 percent of the excess over
$2,100,000. $1,600,000.
Over $2,100,000 but no$133,500 plus 10 percent of the excess over
$2,600,000. $2,100,000.
Over $2,600,000 but no$183,500 plus 11 percent of the excess over
$3,100,000. $2,600,000.
Over $3,100,000 but no$238,500 plus 12 percent of the excess over
$3,600,000. $3,100,000.
Over $3,600,000 but no$298,500 plus 13 percent of the excess over
$4,100,000. $3,600,000.
Over $4,100,000 but no$363,500 plus 14 percent of the excess over
$5,100,000. $4,100,000.
Over $5,100,000 but no$503,500 plus 15 percent of the excess over
$6,100,000. $5,100,000.
Over $6,100,000 but no$653,500 plus 16 percent of the excess over
$7,100,000. $6,100,000.
Over $7,100,000 but no$813,500 plus 17 percent of the excess over
$8,100,000. $7,100,000.
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Over $8,100,000 but no$983,500 plus 18 percent of the excess over
$9,100,000. $8,100,000.
Over $9,100,000 but no$1,163,500 plus 19 percent of the excess over
$10,100,000. $9,100,000.
Over $10,100,000......$1,353,500 plus 20 percent of the excess over
$10,100,000.
``(d) Determination of Unified Credit.--In the case of an estate to
which this section applies, subsection (a) shall not apply in
determining the credit under section 2010.''.
(b) Conforming Amendments.--
(1) Section 2011 <<NOTE: 26 USC 2011.>> is amended by
striking subsection (d) and by redesignating subsections (e),
(f), and (g) as subsections (d), (e), and (f), respectively.
(2) Section 2053(d)(3)(B) is amended by striking ``section
2011(e)'' and inserting ``section 2011(d)''.
(3) Paragraph (9) of section 532(c) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 <<NOTE: Ante, p.
75.>> is repealed.
(c) Clerical Amendment.--The item relating to section 2201 in the
table of sections for subchapter C of chapter 11 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.''.
(d) <<NOTE: 26 USC 2011 note. Applicability.>> Effective Date;
Waiver of Limitations.--
(1) Effective date.--The amendments made by this section
shall apply to estates of decedents--
(A) dying on or after September 11, 2001; and
(B) in the case of individuals dying as a result of
the April 19, 1995, terrorist attack, dying on or after
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