HR 2778 RDS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TREATMENT OF CERTAIN INDIVIDUALS PER-
FORMING SERVICES IN CERTAIN HAZARDOUS
DUTY AREAS.
(a) GENERAL RULE.—For purposes of the following
provisions of the Internal Revenue Code of 1986, a quali-
fied hazardous duty area shall be treated in the same man-
ner as if it were a combat zone (as determined under sec-
tion 112 of such Code):
(1) Section 2(a)(3) (relating to special rule
where deceased spouse was in missing status).
(2) Section 112 (relating to the exclusion of
certain combat pay of members of the Armed
Forces).
(3) Section 692 (relating to income taxes of
members of Armed Forces on death).
(4) Section 2201 (relating to members of the
Armed Forces dying in combat zone or by reason of
combat-zone-incurred wounds, etc.).
(5) Section 3401(a)(1) (defining wages relating
to combat pay for members of the Armed Forces).
(6) Section 4253(d) (relating to the taxation of
phone service originating from a combat zone from
members of the Armed Forces).
HR 2778 RDS
(7) Section 6013(f)(1) (relating to joint return
where individual is in missing status).
(8) Section 7508 (relating to time for perform-
ing certain acts postponed by reason of service in
combat zone).
(b) QUALIFIED HAZARDOUS DUTY AREA.—For pur-
poses of this section, the term ‘‘qualified hazardous duty
area’’ means Bosnia and Herzegovina, Croatia, or Mac-
edonia, if as of the date of the enactment of this section
any member of the Armed Forces of the United States
is entitled to special pay under section 310 of title 37,
United States Code (relating to special pay; duty subject
to hostile fire or imminent danger) for services performed
in such country. Such term includes any such country only
during the period such entitlement is in effect. Solely for
purposes of applying section 7508 of the Internal Revenue
Code of 1986, in the case of an individual who is perform-
ing services as part of Operation Joint Endeavor outside
the United States while deployed away from such individ-
ual’s permanent duty station, the term ‘‘qualified hazard-
ous duty area’’ includes, during the period for which such
entitlement is in effect, any area in which such services
are performed.
(c) EXCLUSION OF COMBAT PAY FROM WITHHOLD-
ING LIMITED TO AMOUNT EXCLUDABLE FROM GROSS IN-
HR 2778 RDS
COME.—Paragraph (1) of section 3401(a) of the Internal
Revenue Code of 1986 (defining wages) is amended by in-
serting before the semicolon the following: ‘‘to the extent
remuneration for such service is excludable from gross in-
come under such section’’.
(d) INCREASE IN COMBAT PAY EXCLUSION FOR OF-
FICERS TO HIGHEST AMOUNT APPLICABLE TO ENLISTED
PERSONNEL.—
(1) IN
GENERAL.—Subsection (b) of section
112 of such Code (relating to commissioned officers)
is amended by striking ‘‘$500’’ and inserting ‘‘the
maximum enlisted amount’’.
(2) MAXIMUM ENLISTED AMOUNT.—Subsection
(c) of section 112 of such Code (relating to defini-
tions) is amended by adding at the end the following
new paragraph:
‘‘(5) The term ‘maximum enlisted amount’
means, for any month, the sum of—
‘‘(A) the highest rate of basic pay payable
for such month to any enlisted member of the
Armed Forces of the United States at the high-
est pay grade applicable to enlisted members,
and
‘‘(B) in the case of an officer entitled to
special pay under section 310 of title 37, Unit-
HR 2778 RDS
ed States Code, for such month, the amount of
such special pay payable to such officer for
such month.’’.
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the provisions of and amendments made
by this section shall take effect on November 21,
1995.
(2) WITHHOLDING.—Subsection (a)(5) and the
amendment made by subsection (c) shall apply to re-
muneration paid after the date of the enactment of
this Act.
SEC. 2. EXTENSION OF INTERNAL REVENUE SERVICE USER
FEES.
Subsection (c) of section 10511 of the Revenue Act
of 1987 is amended by striking ‘‘October 1, 2000’’ and
by inserting ‘‘October 1, 2003’’.
Passed the House of Representatives March 5,
1996.
Attest:
ROBIN H. CARLE,
Clerk.