In the Senate of the United States,
December 20 (legislative day, December 18), 2001.
Resolved, That the Senate agree to the amendment of
the House of Representatives to the amendments of the Sen-
ate to the bill (H.R. 2884) entitled ‘‘An Act to amend the
Internal Revenue Code of 1986 to provide tax relief for vic-
tims of the terrorist attacks against the United States on
September 11, 2001.’’, with the following
SENATE AMENDMENT TO HOUSE AMENDMENT TO
SENATE AMENDMENTS:
In lieu of the matter proposed to be inserted by the
House amendment to the text of the bill, insert:
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Victims of Terrorism Tax Relief Act of 2001’’.
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(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment 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 provi-
sion 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 in-
vestigations.
TITLE III—NO IMPACT ON SOCIAL SECURITY TRUST FUNDS
Sec. 301. No impact on social security trust funds.
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TITLE I——VICTIMS OF
TERRORISM TAX RELIEF
Subtitle A—Relief Provisions for
Victims of Terrorist Attacks
SEC. 101. INCOME TAXES OF VICTIMS OF TERRORIST AT-
TACKS.
(a) IN GENERAL.—Section 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 para-
graph (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
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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.—Sub-
ject 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 com-
puted by only taking into account the items of in-
come, 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 vic-
tim, or
‘‘(B) amounts payable in the taxable year
which would not have been payable in such tax-
able year but for an action taken after Sep-
tember 11, 2001.
‘‘(4) SPECIFIED TERRORIST VICTIM.—For pur-
poses of this subsection, the term ‘specified terrorist
victim’ means any decedent—
‘‘(A) who dies as a result of wounds or in-
jury incurred as a result of the terrorist attacks
against the United States on April 19, 1995, or
September 11, 2001, or
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‘‘(B) who dies as a result of illness in-
curred as a result of an attack involving an-
thrax 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 insert-
ing ‘‘and victims of certain terrorist attacks’’ before
‘‘on death’’.
(c) CLERICAL AMENDMENTS.—
(1) The heading of section 692 is amended to
read as follows:
‘‘SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES
AND VICTIMS OF CERTAIN TERRORIST AT-
TACKS 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.’’.
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(d) EFFECTIVE DATE; WAIVER OF LIMITATIONS.—
(1) 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 begin-
ning on the date of the enactment of this Act by the
operation of any law or rule of law (including res ju-
dicata), 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 fol-
lowing new subsection:
‘‘(i) CERTAIN EMPLOYEE DEATH BENEFITS PAY-
ABLE BY REASON OF DEATH OF CERTAIN TERRORIST
VICTIMS.—
‘‘(1) IN GENERAL.—Gross income does not in-
clude amounts (whether in a single sum or other-
wise) 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)).
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‘‘(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 ex-
empt from tax under section 501(a).
‘‘(3) TREATMENT OF SELF-EMPLOYED INDIVID-
UALS.—For purposes of paragraph (1), the term
‘employee’ includes a self-employed individual (as de-
fined in section 401(c)(1)).’’.
(b) EFFECTIVE DATE; WAIVER OF LIMITATIONS.—
(1) 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 begin-
ning on the date of the enactment of this Act by the
operation of any law or rule of law (including res ju-