To extend the time for performing certain acts under the internal revenue laws for individuals performing services as part of the Desert Shield operation.
PL 102-2 (H.R.4), enacted 01/30/1991

PUBLIC LAW 102-2—JAN. 30, 1991 
105 STAT. 5 
Public Law 102-2 
102d Congress 
An Act 
To extend the time for performing certcdn acts under the internal revenue laws 
for individuals performing services as part of the Desert Shield Operation. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. EXTENSION OF TIME FOR PERFORMING CERTAIN ACTS. 
(a) INDIVIDUALS PERFORMING DESERT SHIELD SERVICES.—Section 
7508 of the Internal Revenue Code of 1986 (relating to time for 
performing certain acts postponed by reason of service in combat 
zone) is amended by adding at the end thereof the following new 
subsection: 
"(f) 
TREATMENT OF INDIVIDUALS PERFORMING DESERT SHIELD 
SERVICES.— 
"(1) IN GENERAL.—Any individual who performed Desert 
Shield services (and the spouse of such individual) shall be 
entitled to the benefits of this section in the same manner as if 
such services were services referred to in subsection (a). 
"(2) DESERT SHIELD SERVICES.—For purposes of this subsection, 
the term 'Desert Shield services' means any services in the 
Armed Forces of the United States or in support of such Armed 
Forces if— 
"(A) such services are performed in the area designated 
by the President pursuant to this subparagraph as the 
'Persian Gulf Desert Shield area', and 
"(B) such services are performed during the period begin-
ning on August 2, 1990, and ending on the date on which 
any portion of the area referred to in subparagraph (A) is 
designated by the President as a combat zone pursuant to 
section 112." 
(b) INTEREST ALLOWED ON OVERPAYMENTS.— 
(1) Section 7508 of such Code is amended by redesignating 
subsections (b), (c), and (d) as subsections (c), (d), and (e), respec-
tively, and by inserting after subsection (a) the following new 
subsection: 
"(b) SPECIAL RULE FOR OVERPAYMENTS.— 
"(1) IN GENERAL.—Subsection (a) shall not apply for purposes 
of determining the amount of interest on any overpayment of 
tax. 
"(2) SPECIAL RULES.—If an individual is entitled to the benefits 
of subsection (a) with respect to any return and such return is 
timely filed (determined after the application of such subsec-
tion), subsections (bX3) and (e) of section 6611 shall not apply." 
(2) Paragraph (2) of section '7508(a) of such Code is amended by 
striking "(including interest)". 
(c) EXTENSION AVAILABLE FOR HOSPITALIZATION IN THE UNITED 
STATES.— 
(1) IN GENERAL.—Subsection (a) of section 7508 of such Code is 
amended— 
Jan. 30, 1991 
[H.R. 4] 
Armed Forces. 
Taxes. 
26 u s e 7508. 
105 STAT. 6 
PUBLIC LAW 102-2—JAN. 30, 1991 
(A) by striking "outside the United States" the first place 
it appears, and 
(B) by striking "the period of continuous hospitalization 
outside the United States" and inserting "the period of 
continuous qualified hospitalization". 
26 use 7508. 
(2) QUALIFIED HOSPiTAuzATiON.—Section 7508 of such Code 
is amended by adding at the end thereof the following new 
subsection: 
"(g) QUALIFIED HOSPITAUZATION.—For purposes of subsection (a), 
the term 'qualified hospitalization' means— 
"(1) any hospitalization outside the United States, and 
"(2) any hospitalization inside the United States, except that 
not more than 5 years of hospitalization may be taken into 
account under this paragraph. 
Paragraph (2) shall not apply for purposes of appl3dng this section 
with respect to the spouse of an individual entitled to the benefits of 
subsection (a)." 
26 use 7508 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
°°*«- 
take effect on August 2,1990. 
Approved January 30, 1991. 
LEGISLATIVE HISTORY—H.R. 4 (S. 251): 
HOUSE REPORTS: No. 102-2 (eomm. on Ways and Means). 
SENATE REPORTS: No. 102-2 accompanying S. 251 (eomm. on Finance). 
eONGRESSIONAL REeORD, Vol. 137 (1991): 
Jan. 23, considered and passed House. 
Jan. 24, considered and passed Senate.