I
105TH CONGRESS
2D SESSION
H. R. 4346
To amend the Internal Revenue Code of 1986 to provide exemptions from
taxation with respect to public safety officers killed in the line of duty.
IN THE HOUSE OF REPRESENTATIVES
JULY 29, 1998
Mr. BUNNING introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
exemptions from taxation with respect to public safety
officers killed in the line of duty.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Fallen Heroes Act’’.
SEC. 2. EXEMPTIONS FROM TAXATION WITH RESPECT TO
PUBLIC SAFETY OFFICERS KILLED IN THE
LINE OF DUTY.
(a) EXEMPTION FROM INCOME AND ESTATE AND
GIFT TAX.—
(1) IN GENERAL.—Chapter 77 of the Internal
Revenue Code of 1986 (relating to miscellaneous
provisions) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 7527. PUBLIC SAFETY OFFICERS KILLED IN THE LINE
OF DUTY.
‘‘(a) IN GENERAL.—In the case of an individual who
at the time of death is a public safety officer killed in the
line of duty—
‘‘(1) any tax imposed by subtitle A shall not
apply with respect to the taxable year in which falls
the date of his death,
‘‘(2) any tax under subtitle A which is unpaid
at the date of his death (including interest, additions
to the tax, and additional amounts) shall not be as-
sessed, and if assessed the assessment shall be
abated, and if collected shall be credited or refunded
as an overpayment,
‘‘(3) any tax imposed by chapter 11 shall not
apply with respect to the estate of such individual,
‘‘(4) any tax imposed by chapter 12 on the
transfer of property by gift by such individual dur-
ing the calendar year in which falls the date of his
death shall not apply, and
‘‘(5) any tax imposed by chapter 13 on a gen-
eration-skipping transfer by such individual shall not
apply.
‘‘(b) EXCEPTIONS.—For purposes of subsection (a),
rules similar to the rules of paragraph (2) of section
101(h) shall apply.
‘‘(c) PUBLIC SAFETY OFFICER.—For purposes of
subsection (a), the term ‘public safety officer’ has the
meaning given such term by section 101(h).’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 77 of such Code is amended by in-
serting after the item relating to section 692 the fol-
lowing new item:
‘‘Sec. 7527. Public safety officers killed in the line of duty.’’.
(b) EXEMPTIONS FOR RETIREMENT AND SURVIVOR
BENEFITS.—So much of subsection (h) of section 101 of
such Code as precedes paragraph (2) is amended to read
as follows:
‘‘(h) DISTRIBUTIONS FROM RETIREMENT PLAN OF
PUBLIC SAFETY OFFICER WHO IS KILLED IN THE LINE
OF DUTY.—
‘‘(1) IN GENERAL.—Gross income shall not in-
clude any distribution from a pension, annuity, re-
tirement, bonus, or profit sharing plan on account of
the death of an individual who, at the time of death,
is a public safety officer (as such term is defined in
section 1204 of the Omnibus Crime Control and
Safe Streets Act of 1968) killed in the line of
duty.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to deaths occurring
after July 23, 1998.
Æ