HR 2884 EAS
to be received by the structured settlement
payee for the transferred payments, the dis-
counted present value of the transferred
payments (including the present value as
determined in the manner described in sec-
tion 7520 of such Code), and the expenses
required under the terms of the structured
settlement factoring transaction to be paid
by the structured settlement payee or de-
ducted from the proceeds of such trans-
action.
(b) PERSONAL EXEMPTION DEDUCTION FOR CERTAIN
DISABILITY TRUSTS.—
(1) IN GENERAL.—Section 642(b) (relating to de-
duction for personal exemption) is amended—
(A) by striking ‘‘An estate’’ and inserting:
‘‘(1) IN GENERAL.—An estate’’, and
(2) by adding at the end the following new para-
graph:
‘‘(2) FULL PERSONAL EXEMPTION AMOUNT FOR
CERTAIN DISABILITY TRUSTS.—Paragraph (1) shall
not apply, and the deduction under section 151 shall
apply, to any disability trust described in subsection
(c)(2)(B)(iv), (d)(4)(A), or (d)(4)(C) of section 1917
of the Social Security Act (42 U.S.C. 1396p) for a
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
beneficiary disabled as the result of a wounding, in-
jury, or illness as a result of the terrorist attacks
against the United States on April 19, 1995, or Sep-
tember 11, 2001, or a terrorist attack involving an-
thrax occurring on or after September 11, 2001, and
before January 1, 2002.’’.
(2) EFFECTIVE
DATE; 
WAIVER
OF
LIMITA-
TIONS.—
(A) EFFECTIVE
DATE.—The amendments
made by this subsection shall apply to taxable
years ending before, on, or after September 11,
2001.
(B) WAIVER OF LIMITATIONS.—If refund or
credit of any overpayment of tax resulting from
the amendments made by this subsection is pre-
vented at any time before the close of the 1-year
period beginning on the date of the enactment of
this Act by the operation of any law or rule of
law (including res judicata), such refund or
credit may nevertheless be made or allowed if
claim therefor is filed before the close of such pe-
riod.
SEC. 106. NO IMPACT ON SOCIAL SECURITY TRUST FUND.
(a) IN GENERAL.—Nothing in this title (or an amend-
ment made by this title) shall be construed to alter or
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
amend title II of the Social Security Act (or any regulation
promulgated under that Act).
(b) TRANSFERS.—
(1) ESTIMATE OF SECRETARY.—The Secretary of
the Treasury shall annually estimate the impact that
the enactment of this Act has on the income and bal-
ances of the trust funds established under section 201
of the Social Security Act (42 U.S.C. 401).
(2) TRANSFER OF FUNDS.—If, under paragraph
(1), the Secretary of the Treasury estimates that the
enactment of this Act has a negative impact on the
income and balances of the trust funds established
under section 201 of the Social Security Act (42
U.S.C. 401), the Secretary shall transfer, not less fre-
quently than quarterly, from the general revenues of
the Federal Government an amount sufficient so as to
ensure that the income and balances of such trust
funds are not reduced as a result of the enactment of
this Act.
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
TITLE II—GENERAL RELIEF FOR
VICTIMS OF DISASTERS AND
TERRORISTIC 
OR 
MILITARY
ACTIONS
SEC. 201. EXCLUSION FOR DISASTER RELIEF PAYMENTS.
(a) IN GENERAL.—Part III of subchapter B of chapter
1 (relating to items specifically excluded from gross income)
is amended by redesignating section 139 as section 140 and
inserting after section 138 the following new section:
‘‘SEC. 139. DISASTER RELIEF PAYMENTS.
‘‘(a) GENERAL
RULE.—Gross income shall not
include—
‘‘(1) any amount received as payment under sec-
tion 406 of the Air Transportation Safety and Sys-
tem Stabilization Act, or
‘‘(2) any amount received by an individual as a
qualified disaster relief payment.
‘‘(b) QUALIFIED DISASTER RELIEF PAYMENT DE-
FINED.—For purposes of this section, the term ‘qualified
disaster relief payment’ means any amount paid to or for
the benefit of an individual—
‘‘(1) to reimburse or pay reasonable and nec-
essary personal, family, living, or funeral expenses
incurred as a result of a qualified disaster,
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
‘‘(2) to reimburse or pay reasonable and nec-
essary expenses incurred for the repair or rehabilita-
tion of a personal residence or repair or replacement
of its contents to the extent that the need for such re-
pair, rehabilitation, or replacement is attributable to
a qualified disaster,
‘‘(3) by a person engaged in the furnishing or
sale of transportation as a common carrier by reason
of the death or personal physical injuries incurred as
a result of a qualified disaster, or
‘‘(4) if such amount is paid by a Federal, State,
or local government, or agency or instrumentality
thereof, in connection with a qualified disaster in
order to promote the general welfare,
but only to the extent any expense compensated by such
payment is not otherwise compensated for by insurance or
otherwise.
‘‘(c) QUALIFIED DISASTER DEFINED.—For purposes
of this section, the term ‘qualified disaster’ means—
‘‘(1) a disaster which results from a terroristic or
military action (as defined in section 692(c)(2)),
‘‘(2) a Presidentially declared disaster (as de-
fined in section 1033(h)(3)),
‘‘(3) a disaster which results from an accident
involving a common carrier, or from any other event,
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
which is determined by the Secretary to be of a cata-
strophic nature, or
‘‘(4) with respect to amounts described in sub-
section (b)(4), a disaster which is determined by an
applicable Federal, State, or local authority (as deter-
mined by the Secretary) to warrant assistance from
the Federal, State, or local government or agency or
instrumentality thereof.
‘‘(d) COORDINATION WITH EMPLOYMENT TAXES.—For
purposes of chapter 2 and subtitle C, a qualified disaster
relief payment shall not be treated as net earnings from
self-employment, wages, or compensation subject to tax.
‘‘(e) NO RELIEF FOR CERTAIN INDIVIDUALS.—Sub-
section (a) shall not apply with respect to any individual
identified by the Attorney General to have been a partici-
pant or conspirator in a terroristic action (as so defined),
or a representative of such individual.’’.
(b) CONFORMING AMENDMENTS.—The table of sections
for part III of subchapter B of chapter 1 is amended by
striking the item relating to section 139 and inserting the
following new items:
‘‘Sec. 139. Disaster relief payments.
‘‘Sec. 140. Cross references to other Acts.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years ending on or after Sep-
tember 11, 2001.
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
SEC. 202. AUTHORITY TO POSTPONE CERTAIN DEADLINES
AND REQUIRED ACTIONS.
(a) EXPANSION OF AUTHORITY RELATING TO DISAS-
TERS AND TERRORISTIC OR MILITARY ACTIONS.—Section
7508A is amended to read as follows:
‘‘SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN DEAD-
LINES BY REASON OF PRESIDENTIALLY DE-
CLARED DISASTER OR TERRORISTIC OR MILI-
TARY ACTIONS.
‘‘(a) IN GENERAL.—In the case of a taxpayer deter-
mined by the Secretary to be affected by a Presidentially
declared disaster (as defined in section 1033(h)(3)) or a ter-
roristic or military action (as defined in section 692(c)(2)),
the Secretary may specify a period of up to one year that
may be disregarded in determining, under the internal rev-
enue laws, in respect of any tax liability of such taxpayer—
‘‘(1) whether any of the acts described in para-
graph (1) of section 7508(a) were performed within
the time prescribed therefor (determined without re-
gard to extension under any other provision of this
subtitle for periods after the date (determined by the
Secretary) of such disaster or action),
‘‘(2) the amount of any interest, penalty, addi-
tional amount, or addition to the tax for periods after
such date, and
‘‘(3) the amount of any credit or refund.
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
‘‘(b) SPECIAL RULES REGARDING PENSIONS, ETC.—
In the case of a pension or other employee benefit plan, or
any sponsor, administrator, participant, beneficiary, or
other person with respect to such plan, affected by a disaster
or action described in subsection (a), the Secretary may
specify a period of up to one year which may be disregarded
in determining the date by which any action is required
or permitted to be completed under this title. No plan shall
be treated as failing to be operated in accordance with the
terms of the plan solely as the result of disregarding any
period by reason of the preceding sentence.
‘‘(c) SPECIAL RULES FOR OVERPAYMENTS.—The rules
of section 7508(b) shall apply for purposes of this section.’’.
(b) CLARIFICATION OF SCOPE OF ACTS SECRETARY
MAY POSTPONE.—Section 7508(a)(1)(K) (relating to time
to be disregarded) is amended by striking ‘‘in regulations
prescribed under this section’’.
(c) CONFORMING AMENDMENTS TO ERISA.—
(1) Part 5 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1131 et seq.) is amended by adding at the end the fol-
lowing new section:
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
‘‘SEC. 518. AUTHORITY TO POSTPONE CERTAIN DEADLINES
BY REASON OF PRESIDENTIALLY DECLARED
DISASTER OR TERRORISTIC OR MILITARY AC-
TIONS.
‘‘In the case of a pension or other employee benefit
plan, or any sponsor, administrator, participant, bene-
ficiary, or other person with respect to such plan, affected
by a Presidentially declared disaster (as defined in section
1033(h)(3) of the Internal Revenue Code of 1986) or a ter-
roristic or military action (as defined in section 692(c)(2)
of such Code), the Secretary may, notwithstanding any
other provision of law, prescribe, by notice or otherwise, a
period of up to one year which may be disregarded in deter-
mining the date by which any action is required or per-
mitted to be completed under this Act. No plan shall be
treated as failing to be operated in accordance with the
terms of the plan solely as the result of disregarding any
period by reason of the preceding sentence.’’.
(2) Section 4002 of Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1302) is amended by
adding at the end the following new subsection:
‘‘(i) SPECIAL RULES REGARDING DISASTERS, ETC.—
In the case of a pension or other employee benefit plan, or
any sponsor, administrator, participant, beneficiary, or
other person with respect to such plan, affected by a Presi-
dentially declared disaster (as defined in section 1033(h)(3)
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
of the Internal Revenue Code of 1986) or a terroristic or
military action (as defined in section 692(c)(2) of such
Code), the corporation may, notwithstanding any other pro-
vision of law, prescribe, by notice or otherwise, a period
of up to one year which may be disregarded in determining
the date by which any action is required or permitted to
be completed under this Act. No plan shall be treated as
failing to be operated in accordance with the terms of the
plan solely as the result of disregarding any period by rea-
son of the preceding sentence.’’.
(d) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Section 6404 is amended—
(A) by striking subsection (h),
(B) by redesignating subsection (i) as sub-
section (h), and
(C) by adding at the end the following new
subsection:
‘‘(i) CROSS REFERENCE.—
‘‘For authority of the Secretary to abate certain
amounts by reason of Presidentially declared dis-
aster or terroristic or military action, see section
7508A.’’.
(2) Section 6081(c) is amended to read as fol-
lows:
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00030
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01
HR 2884 EAS
‘‘(c) CROSS REFERENCES.—
‘‘For time for performing certain acts postponed by
reason of war, see section 7508, and by reason of
Presidentially declared disaster or terroristic or
military action, see section 7508A.’’.
(3) Section 6161(d) is amended by adding at the
end the following new paragraph:
‘‘(3) POSTPONEMENT OF CERTAIN ACTS.—
‘‘For time for performing certain acts postponed by
reason of war, see section 7508, and by reason of
Presidentially declared disaster or terroristic or
military action, see section 7508A.’’.
(d) CLERICAL AMENDMENTS.—
(1) The item relating to section 7508A in the
table of sections for chapter 77 is amended to read as
follows:
‘‘Sec. 7508A. Authority to postpone certain deadlines by reason of
Presidentially declared disaster or terroristic or
military actions.’’.
(2) The table of contents for the Employee Re-
tirement Income Security Act of 1974 is amended by
inserting after the item relating to section 517 the fol-
lowing new item:
‘‘Sec. 518. Authority to postpone certain deadlines by reason of
Presidentially declared disaster or terroristic or
military actions.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply to disasters and terroristic or military
actions occurring on or after September 11, 2001, with re-
spect to any action of the Secretary of the Treasury, the
Secretary of Labor, or the Pension Benefit Guaranty Cor-
VerDate 11-MAY-2000
08:42 Feb 04, 2002
Jkt 010199
PO 00000
Frm 00031
Fmt 6652
Sfmt 6203
E:\PICKUP\H2884.ONE
txed01
PsN: txed01