II

107TH CONGRESS

1ST SESSION S. 1440

To amend the Internal Revenue Code of 1986 to provide tax relief for

victims of the terrorist attacks against the United States on September

11, 2001.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 19, 2001

Mr. CRAIG introduced the following bill; which was referred to the Committee

on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide

tax relief for victims of the terrorist attacks against

the United States on September 11, 2001.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Victims of Terrorism

5 Relief Act of 2001’’.

6 SEC. 2. INCOME TAXES OF VICTIMS OF TERRORIST AT7 TACKS.

8 (a) IN GENERAL.—Section 692 of the Internal Rev9 enue Code of 1986 (relating to income taxes of members
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1 of Armed Forces on death) is amended by adding at the

2 end the following new subsection:

3 ‘‘(d) CERTAIN INDIVIDUALS DYING AS A RESULT OF

4 SEPTEMBER 11, 2001, TERRORIST ATTACKS.—

5 ‘‘(1) IN GENERAL.—In the case of any indi6 vidual who dies as a result of wounds or injury in7 curred as a result of the terrorist attacks against the

8 United States on September 11, 2001, any tax im9 posed by this subtitle shall not apply—

10 ‘‘(A) with respect to the taxable year in

11 which falls the date of such individual’s death,

12 and

13 ‘‘(B) with respect to any prior taxable year

14 in the period beginning with the last taxable

15 year ending before the taxable year in which the

16 wounds or injury were incurred.

17 ‘‘(2) EXCEPTION.—Paragraph (1) shall not

18 apply to an individual whom the Secretary deter19 mines was a perpetrator of any such terrorist at20 tack.’’.

21 (b) CONFORMING AND CLERICAL AMENDMENTS.—

22 (1) The heading of section 692 of such Code is

23 amended to read as follows:
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1 ‘‘SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES

2 ON DEATH AND VICTIMS OF CERTAIN TER3 RORIST ATTACKS.’’.

4 (2) The item relating to section 692 in the table

5 of sections for part II of subchapter J of chapter 1

6 of such Code is amended to read as follows:

‘‘Sec. 692. Income taxes of members of Armed Forces on death

and victims of certain terrorist attacks.’’.

7 (3) Section 5(b)(1) of such Code is amended by

8 inserting ‘‘and victims of certain terrorist attacks’’

9 after ‘‘on death’’.

10 (4) Section 6013(f)(2)(B) of such Code is

11 amended by inserting ‘‘and victims of certain ter12 rorist attacks’’ after ‘‘on death’’.

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to taxable years ending on or after

15 September 11, 2001.

16 SEC. 3. RELIEF FROM ADDITIONAL ESTATE TAX.

17 (a) IN GENERAL.—Section 2201 of the Internal Rev18 enue Code of 1986 is amended—

19 (1) in the first sentence by inserting ‘‘(a) IN

20 GENERAL.—’’ before ‘‘The additional estate tax’’,

21 and

22 (2) by adding at the end the following:

23 ‘‘(b) VICTIMS OF CERTAIN TERRORIST ATTACKS.—

24 The additional estate tax shall not apply to the transfer
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1 of the taxable estate of any individual who dies as a result

2 of wounds or injury incurred as a result of the terrorist

3 attacks against the United States on September 11, 2001.

4 The preceding sentence shall not apply with respect to any

5 individual whom the Secretary determines was a perpe6 trator of any such terrorist attack.’’.

7 (b) CLERICAL AMENDMENTS.—

8 (1) The heading of section 2201 of such Code

9 is amended to read as follows:

10 ‘‘SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS

11 OF THE ARMED FORCES AND DEATHS OF VIC12 TIMS OF CERTAIN TERRORIST ATTACKS.’’.

13 (2) The item relating to section 2201 in the

14 table of sections for subchapter C of chapter 11 of

15 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.’’.

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to estates of decedents dying on

18 or after September 11, 2001.

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