HR 2884 EAS
poration occurring on or after the date of the enactment
of this Act.
SEC. 203. INTERNAL REVENUE SERVICE DISASTER RE-
SPONSE TEAM.
(a) IN GENERAL.—Section 7508A, as amended by sec-
tion 202(a), is amended by adding at the end the following
new subsection:
‘‘(d) DUTIES OF DISASTER RESPONSE TEAM.—The
Secretary shall establish as a permanent office in the na-
tional office of the Internal Revenue Service a disaster re-
sponse team which, in coordination with the Federal Emer-
gency Management Agency, shall assist taxpayers in clari-
fying and resolving Federal tax matters associated with or
resulting from any Presidentially declared disaster (as de-
fined in section 1033(h)(3)) or a terroristic or military ac-
tion (as defined in section 692(c)(2)).’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall take effect on the date of the enactment of this
Act.
SEC. 204. APPLICATION OF CERTAIN PROVISIONS TO TER-
RORISTIC OR MILITARY ACTIONS.
(a) EXCLUSION FOR DEATH BENEFITS.—Section 101
(relating to certain death benefits) is amended by adding
at the end the following new subsection:
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HR 2884 EAS
‘‘(i) CERTAIN EMPLOYEE DEATH BENEFITS PAYABLE
BY REASON OF DEATH FROM TERRORISTIC OR MILITARY
ACTIONS.—
‘‘(1) IN GENERAL.—Gross income does not in-
clude amounts which are received (whether in a single
sum or otherwise) if such amounts are paid by an
employer by reason of the death of an employee in-
curred as a result of a terroristic or military action
(as defined in section 692(c)(2)).
‘‘(2) NO RELIEF FOR CERTAIN INDIVIDUALS.—
Paragraph (1) shall not apply with respect to any in-
dividual identified by the Attorney General to have
been a participant or conspirator in a terroristic ac-
tion (as so defined), or a representative of such indi-
vidual.
‘‘(3) TREATMENT OF SELF-EMPLOYED INDIVID-
UALS.—For purposes of this subsection, the term ‘em-
ployee’ includes a self-employed person (as described
in section 401(c)(1)).’’.
(b) DISABILITY INCOME.—Section 104(a)(5) (relating
to compensation for injuries or sickness) is amended by
striking ‘‘a violent attack’’ and all that follows through the
period and inserting ‘‘a terroristic or military action (as
defined in section 692(c)(2)).’’.
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HR 2884 EAS
(c) EXEMPTION FROM INCOME TAX
FOR CERTAIN
MILITARY
OR CIVILIAN EMPLOYEES.—Section 692(c) is
amended—
(1) by striking ‘‘outside the United States’’ in
paragraph (1), and
(2) by striking ‘‘SUSTAINED OVERSEAS’’ in the
heading.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years ending on or after Sep-
tember 11, 2001.
SEC. 205. CLARIFICATION OF DUE DATE FOR AIRLINE EX-
CISE TAX DEPOSITS.
(a) IN GENERAL.—Paragraph (3) of section 301(a) of
the Air Transportation Safety and System Stabilization
Act (Public Law 107–42) is amended to read as follows:
‘‘(3) AIRLINE-RELATED DEPOSIT.—For purposes
of this subsection, the term ‘airline-related deposit’
means any deposit of taxes imposed by subchapter C
of chapter 33 of such Code (relating to transportation
by air).’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall take effect as if included in section 301 of the
Air Transportation Safety and System Stabilization Act
(Public Law 107–42).
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HR 2884 EAS
SEC. 206. COORDINATION WITH AIR TRANSPORTATION
SAFETY AND SYSTEM STABILIZATION ACT.
No reduction in Federal tax liability by reason of any
provision of, or amendment made by, this Act shall be con-
sidered as being received from a collateral source for pur-
poses of section 402(4) of the Air Transportation Safety and
System Stabilization Act (Public Law 107–42).
TITLE III—DISCLOSURE OF TAX
INFORMATION IN TERRORISM
AND NATIONAL SECURITY IN-
VESTIGATIONS
SEC. 301. DISCLOSURE OF TAX INFORMATION IN TER-
RORISM AND NATIONAL SECURITY INVES-
TIGATIONS.
(a) DISCLOSURE WITHOUT A REQUEST OF INFORMA-
TION RELATING TO TERRORIST ACTIVITIES, ETC.—Para-
graph (3) of section 6103(i) (relating to disclosure of return
information to apprise appropriate officials of criminal ac-
tivities or emergency circumstances) is amended by adding
at the end the following new subparagraph:
‘‘(C) TERRORIST ACTIVITIES, ETC.—
‘‘(i) IN GENERAL.—Except as provided
in paragraph (6), the Secretary may dis-
close in writing return information (other
than taxpayer return information) that
may be related to a terrorist incident,
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HR 2884 EAS
threat, or activity to the extent necessary to
apprise the head of the appropriate Federal
law enforcement agency responsible for in-
vestigating or responding to such terrorist
incident, threat, or activity. The head of the
agency may disclose such return informa-
tion to officers and employees of such agen-
cy to the extent necessary to investigate or
respond to such terrorist incident, threat, or
activity.
‘‘(ii) DISCLOSURE
TO
THE
DEPART-
MENT OF JUSTICE.—Returns and taxpayer
return information may also be disclosed to
the Attorney General under clause (i) to the
extent necessary for, and solely for use in
preparing, an application under paragraph
(7)(D).
‘‘(iii) TAXPAYER IDENTITY.—For pur-
poses of this subparagraph, a taxpayer’s
identity shall not be treated as taxpayer re-
turn information.
‘‘(iv) 
TERMINATION.—No 
disclosure
may be made under this subparagraph after
December 31, 2003.’’.
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HR 2884 EAS
(b) DISCLOSURE UPON REQUEST OF INFORMATION
RELATING TO TERRORIST ACTIVITIES, ETC.—Subsection
(i) of section 6103 (relating to disclosure to Federal officers
or employees for administration of Federal laws not relat-
ing to tax administration) is amended by redesignating
paragraph (7) as paragraph (8) and by inserting after
paragraph (6) the following new paragraph:
‘‘(7) DISCLOSURE UPON REQUEST OF INFORMA-
TION RELATING TO TERRORIST ACTIVITIES, ETC.—
‘‘(A) DISCLOSURE TO LAW ENFORCEMENT
AGENCIES.—
‘‘(i) IN GENERAL.—Except as provided
in paragraph (6), upon receipt by the Sec-
retary of a written request which meets the
requirements of clause (iii), the Secretary
may disclose return information (other than
taxpayer return information) to officers and
employees of any Federal law enforcement
agency who are personally and directly en-
gaged in the response to or investigation of
any terrorist incident, threat, or activity.
‘‘(ii) DISCLOSURE
TO
STATE
AND
LOCAL LAW ENFORCEMENT AGENCIES.—The
head of any Federal law enforcement agency
may disclose return information obtained
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HR 2884 EAS
under clause (i) to officers and employees of
any State or local law enforcement agency
but only if such agency is part of a team
with the Federal law enforcement agency in
such response or investigation and such in-
formation is disclosed only to officers and
employees who are personally and directly
engaged in such response or investigation.
‘‘(iii) 
REQUIREMENTS.—A 
request
meets the requirements of this clause if—
‘‘(I) the request is made by the
head of any Federal law enforcement
agency (or his delegate) involved in the
response to or investigation of any ter-
rorist incident, threat, or activity, and
‘‘(II) the request sets forth the spe-
cific reason or reasons why such disclo-
sure may be relevant to a terrorist in-
cident, threat, or activity.
‘‘(iv) LIMITATION ON USE OF INFORMA-
TION.—Information disclosed under this
subparagraph shall be solely for the use of
the officers and employees to whom such in-
formation is disclosed in such response or
investigation.
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HR 2884 EAS
‘‘(B) DISCLOSURE TO INTELLIGENCE AGEN-
CIES.—
‘‘(i) IN GENERAL.—Except as provided
in paragraph (6), upon receipt by the Sec-
retary of a written request which meets the
requirements of clause (ii), the Secretary
may disclose return information (other than
taxpayer return information) to those offi-
cers and employees of the Department of
Justice, the Department of the Treasury,
and other Federal intelligence agencies who
are personally and directly engaged in the
collection or analysis of intelligence and
counterintelligence information or inves-
tigation concerning any terrorist incident,
threat, or activity. For purposes of the pre-
ceding sentence, the information disclosed
under the preceding sentence shall be solely
for the use of such officers and employees in
such investigation, collection, or analysis.
‘‘(ii) 
REQUIREMENTS.—A 
request
meets the requirements of this subparagraph
if the request—
‘‘(I) is made by an individual de-
scribed in clause (iii), and
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HR 2884 EAS
‘‘(II) sets forth the specific reason
or reasons why such disclosure may be
relevant to a terrorist incident, threat,
or activity.
‘‘(iii) REQUESTING INDIVIDUALS.—An
individual described in this subparagraph
is an individual—
‘‘(I) who is an officer or employee
of the Department of Justice or the De-
partment of the Treasury who is ap-
pointed by the President with the ad-
vice and consent of the Senate or who
is the Director of the United States Se-
cret Service, and
‘‘(II) who is responsible for the
collection and analysis of intelligence
and 
counterintelligence 
information
concerning 
any 
terrorist 
incident,
threat, or activity.
‘‘(iv) TAXPAYER IDENTITY.—For pur-
poses of this subparagraph, a taxpayer’s
identity shall not be treated as taxpayer re-
turn information.
‘‘(C) DISCLOSURE
UNDER
EX
PARTE
OR-
DERS.—
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HR 2884 EAS
‘‘(i) IN GENERAL.—Except as provided
in paragraph (6), any return or return in-
formation with respect to any specified tax-
able period or periods shall, pursuant to
and upon the grant of an ex parte order by
a Federal district court judge or magistrate
under clause (ii), be open (but only to the
extent necessary as provided in such order)
to inspection by, or disclosure to, officers
and employees of any Federal law enforce-
ment agency or Federal intelligence agency
who are personally and directly engaged in
any investigation, response to, or analysis
of intelligence and counterintelligence infor-
mation concerning any terrorist incident,
threat, or activity. Return or return infor-
mation opened pursuant to the preceding
sentence shall be solely for the use of such
officers and employees in the investigation,
response, or analysis, and in any judicial,
administrative, or grand jury proceedings,
pertaining to such terrorist incident, threat,
or activity.
‘‘(ii) APPLICATION FOR ORDER.—The
Attorney General, the Deputy Attorney Gen-
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HR 2884 EAS
eral, the Associate Attorney General, any
Assistant Attorney General, or any United
States attorney may authorize an applica-
tion to a Federal district court judge or
magistrate for the order referred to in clause
(i). Upon such application, such judge or
magistrate may grant such order if he de-
termines on the basis of the facts submitted
by the applicant that—
‘‘(I) there is reasonable cause to
believe, based upon information be-
lieved to be reliable, that the return or
return information may be relevant to
a matter relating to such terrorist inci-
dent, threat, or activity, and
‘‘(II) the return or return infor-
mation is sought exclusively for use in
a Federal investigation, analysis, or
proceeding concerning any terrorist in-
cident, threat, or activity.
‘‘(D) SPECIAL RULE FOR EX PARTE DISCLO-
SURE BY THE IRS.—
‘‘(i) IN GENERAL.—Except as provided
in paragraph (6), the Secretary may au-
thorize an application to a Federal district
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HR 2884 EAS
court judge or magistrate for the order re-
ferred to in subparagraph (C)(i). Upon such
application, such judge or magistrate may
grant such order if he determines on the
basis of the facts submitted by the applicant
that the requirements of subparagraph
(C)(ii)(I) are met.
‘‘(ii) LIMITATION ON USE OF INFORMA-
TION.—Information disclosed under clause
(i)—
‘‘(I) may be disclosed only to the
extent necessary to apprise the head of
the appropriate Federal law enforce-
ment agency responsible for inves-
tigating or responding to a terrorist
incident, threat, or activity, and
‘‘(II) shall be solely for use in a
Federal investigation, analysis, or pro-
ceeding concerning any terrorist inci-
dent, threat, or activity.
The head of such Federal agency may dis-
close such information to officers and em-
ployees of such agency to the extent nec-
essary to investigate or respond to such ter-
rorist incident, threat, or activity.
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HR 2884 EAS
(5) 
Paragraph 
(6) 
of 
section 
6103(i) 
is
amended—
(A) by striking ‘‘(3)(A)’’ and inserting
‘‘(3)(A) or (C)’’, and
(B) by striking ‘‘or (7)’’ and inserting ‘‘(7),
or (8)’’.
(6) Section 6103(p)(3) is amended—
(A) in subparagraph (A) by striking
‘‘(7)(A)(ii)’’ and inserting ‘‘(8)(A)(ii)’’, and
(B) in subparagraph (C) by striking
‘‘(i)(3)(B)(i)’’ and inserting ‘‘(i)(3)(B)(i) or
(7)(A)(ii)’’.
(7) Section 6103(p)(4) is amended—
(A) in the matter preceding subparagraph
(A)—
(i) by striking ‘‘or (5),’’ the first place
it appears and inserting ‘‘(5), or (7),’’, and
(ii) by striking ‘‘(i)(3)(B)(i),’’ and in-
serting ‘‘(i)(3)(B)(i) or (7)(A)(ii),’’, and
(B) in subparagraph (F)(ii) by striking ‘‘or
(5),’’ the first place it appears and inserting ‘‘(5)
or (7),’’.
(8) Section 6103(p)(6)(B)(i) is amended by
striking ‘‘(i)(7)(A)(ii)’’ and inserting ‘‘(i)(8)(A)(ii)’’.
(9) Section 6105(b) is amended—
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HR 2884 EAS
(A) by striking ‘‘or’’ at the end of para-
graph (2),
(B) by striking ‘‘paragraphs (1) or (2)’’ in
paragraph (3) and inserting ‘‘paragraph (1),
(2), or (3)’’,
(C) by redesignating paragraph (3) as
paragraph (4), and
(D) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) to the disclosure of tax convention informa-
tion on the same terms as return information may be
disclosed under paragraph (3)(C) or (7) of section
6103(i), except that in the case of tax convention in-
formation provided by a foreign government, no dis-
closure may be made under this paragraph without
the written consent of the foreign government, or’’.
(10) Section 7213(a)(2) is amended by striking
‘‘(i)(3)(B)(i),’’ 
and 
inserting 
‘‘(i)(3)(B)(i) 
or
(7)(A)(ii),’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to disclosures made on or after the date
of the enactment of this Act.
Amend the title so as to read: ‘‘An Act to amend the
Internal Revenue Code of 1986 to provide tax relief for
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HR 2884 EAS
victims of the terrorist attacks against the United States,
and for other purposes.’’.
Attest:
Secretary.
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107TH CONGRESS
1ST SESSION
H. R. 2884
AMENDMENTS
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