26 U.S.C. § 692 — Income taxes of members of Armed Forces, astronauts, and victims of certain terrorist attacks on death
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 932 words · no verdicts yet
This section provides tax relief for people who die in specified military service, terroristic or military actions, terrorist attacks, and qualifying astronaut deaths. It also sets limits and special rules for that relief.
(a) For an individual who dies on active duty in the Armed Forces while serving in a combat zone, or from wounds, disease, or injury incurred there, no tax under this subtitle applies for the death year or earlier taxable years ending on or after the first day of combat-zone service. Unpaid earlier taxes, including interest and additions, may not be assessed; assessments must be canceled; and collected amounts must be credited or refunded as overpayments. (b) For a person missing under section 6013(f)(3)(A), death is treated as occurring no earlier than the date determined under section 556 of title 37. Except for the Vietnam combat zone, this cannot extend relief to a year beginning more than two years after the combat activities ended under section 112. (c)(1) For a military or civilian United States employee* who dies from wounds or injury incurred as that employee during a terroristic or military action, no subtitle tax applies for the death year or earlier years beginning with the last year before the injury year. (2) “Terroristic or military action” means terroristic activity probably directed against the United States or an ally, or military action involving United States Armed Forces resulting from violence or aggression, or a threat, against the United States or an ally. Training exercises are not military action. (3) A multinational force in which the United States participates counts as an ally. (d)(1) For a specified terrorist victim, no chapter tax applies for the death year or earlier years beginning with the last year before the year of the specified wounds, injury, or illness. (2) If that relief is under $10,000, the victim is treated as paying the difference toward the last taxable year’s tax. (3) Relief does not cover tax calculated only from deferred compensation payable after death or amounts made payable that year because of an action after September 11, 2001, subject to the Secretary’s rules. (4) “Specified terrorist victim” means a decedent who dies from wounds or injury from the April 19, 1995, or September 11, 2001, attacks, or from illness from an anthrax attack on or after September 11, 2001, and before January 1, 2002. It excludes a person the Attorney General* identifies as a participant, conspirator, or representative of one. (5) These rules apply to an astronaut who dies in the line of duty, except the date of the astronaut’s death is used instead of September 11, 2001, for (3)(B).
In the case of any individual who dies while in active service as a member of the Armed Forces of the United States, if such death occurred while serving in a combat zone (as determined under section 112) or as a result of wounds, disease, or injury incurred while so serving—
any tax imposed by this subtitle shall not apply with respect to the taxable year* in which falls the date of his death, or with respect to any prior taxable year ending on or after the first day he so served in a combat zone; and
any tax under this subtitle and under the corresponding provisions of prior revenue laws for taxable years preceding those specified in paragraph (1) which is unpaid at the date of his death (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.
For purposes of this section, in the case of an individual who was in a missing status within the meaning of section 6013(f)(3)(A), the date of his death shall be treated as being not earlier than the date on which a determination of his death is made under section 556 of title 37 of the United States Code. Except in the case of the combat zone designated for purposes of the Vietnam conflict, the preceding sentence shall not cause subsection (a)(1) to apply for any taxable year beginning more than 2 years after the date designated under section 112 as the date of termination of combatant activities in a combat zone.
In the case of any individual who dies while a military or civilian employee* of the United States, if such death occurs as a result of wounds or injury which was incurred while the individual was a military or civilian employee of the United States and which was incurred in a terroristic or military action, any tax imposed by this subtitle shall not apply—
with respect to the taxable year in which falls the date of his death, and
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 or injury were incurred.
For purposes of paragraph (1), the term “terroristic or military action” means—
any terroristic activity which a preponderance of the evidence indicates was directed against the United States or any of its allies, and
any military action involving the Armed Forces of the United States and resulting from violence or aggression against the United States or any of its allies (or threat thereof).
For purposes of the preceding sentence, the term “military action” does not include training exercises.
For purposes of paragraph (2), any multinational force in which the United States is participating shall be treated as an ally of the United States.
In the case of a specified terrorist victim, any tax imposed by this chapter shall not apply—
with respect to the taxable year in which falls the date of death, and
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.
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.
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—
deferred compensation which would have been payable after death if the individual had died other than as a specified terrorist victim, or
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.
For purposes of this subsection, the term “specified terrorist victim” means any decedent—
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
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.
The provisions of this subsection shall apply to any astronaut whose death occurs in the line of duty, except that paragraph (3)(B) shall be applied by using the date of the death of the astronaut rather than September 11, 2001.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 238; Pub. L. 93–597, § 4(a), Jan. 2, 1975, 88 Stat. 1952; Pub. L. 94–455, title XIX, § 1901(a)(92), Oct. 4, 1976, 90 Stat. 1780; Pub. L. 94–569, § 3(c), Oct. 20, 1976, 90 Stat. 2699; Pub. L. 97–448, title III, § 307(b), Jan. 12, 1983, 96 Stat. 2407; Pub. L. 98–259, § 1(a), Apr. 10, 1984, 98 Stat. 142; Pub. L. 98–369, div. A, title VII, § 722(g)(2), (3), July 18, 1984, 98 Stat. 974; Pub. L. 99–514, title XVII, § 1708(a)(2), Oct. 22, 1986, 100 Stat. 2782; Pub. L. 107–134, title I, §§ 101(a), (c)(1), 113(b), Jan. 23, 2002, 115 Stat. 2428, 2435; Pub. L. 108–121, title I, § 110(a)(1), (3)(A), Nov. 11, 2003, 117 Stat. 1342; Pub. L. 113–295, div. A, title II, § 221(a)(67), Dec. 19, 2014, 128 Stat. 4048.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1975Amended · Pub. L. 93-597 · 88 Stat. 1952
- 1976Amended · Pub. L. 94-455 · 90 Stat. 1780
- 1976Amended · Pub. L. 94-569 · 90 Stat. 2699
- 1983Amended · Pub. L. 97-448 · 96 Stat. 2407
- 1984Amended · Pub. L. 98-259 · 98 Stat. 142
- 1984Amended · Pub. L. 98-369 · 98 Stat. 974
- 1986Amended · Pub. L. 99-514 · 100 Stat. 2782
- 2002Amended · Pub. L. 107-134 · 115 Stat. 2428, 2435
- 2003Amended · Pub. L. 108-121 · 117 Stat. 1342
- 2014Amended · Pub. L. 113-295 · 128 Stat. 4048
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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