Victims of Terrorism Tax Relief Act of 2001
PL 107-134 (H.R.2884), enacted 01/23/2002

PUBLIC LAW 107-134-^AN. 23, 2002 
115 STAT. 2427 
Public Law 107-134 
107th Congress 
An Act 
To amend the Internal Revenue Code of 1986 to provide tax relief for victims 
Jan. 23, 2002 
of the terrorist attacks against the United States, and for other purposes. 
[H.R. 2884] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Victims of 
Terrorism Tax 
SECTION 1. SHORT TITLE; ETC. 
Relief Act of 
2001. 
(a) SHORT TITLE.—This Act may be cited as the "Victims of 26 use i note. 
Terrorism Tax Rehef Act of 2001". 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this Act an amendment 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 provision 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 investiga-
tions. 
TITLE III—NO IMPACT ON SOCLy. SECURITY TRUST FUNDS 
Sec. 301. No impact on social security trust fiinds. 
115 STAT. 2428 
PUBLIC LAW 107-134-^AN. 23, 2002 
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. 
26 use 692. 
(a) IN GENERAL.—Section 692 (relating to income taxes of mem-
bers 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 paragraph (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 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.—Subject 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 computed by only taking into account the items of income, 
gain, or other amounts attributable to— 
"(A) deferred compensation which would have been 
payable aft;er death if the individual had died other than 
as a specified terrorist victim, or 
"(B) amounts payable in the taxable year which would 
not have been payable in such taxable year but for an 
action taken after September 11, 2001. 
"(4) SPECIFIED TERRORIST VICTIM.—For purposes of this 
subsection, the term 'specified terrorist victim means any 
decedent— 
"(A) who dies as a result of wounds or injury incurred 
as a result of the terrorist attacks against the United 
States on April 19, 1995, or September 11, 2001, or 
"(B) who dies as a result of illness incurred as a result 
of an attack involving anthrax occurring on or after Sep-
tember 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 inserting "and vic-
tims of certain terrorist attacks" before "on death". 
(c) CLERICAL AMENDMENTS.— 
•S^'~ 
PUBLIC LAW 107-134-^AN. 23, 2002 
115 STAT. 2429 
(1) The heading of section 692 is amended to read as 26 use 692. 
follows: 
"SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES AND VIC-
TIMS OF CERTAIN TERRORIST ATTACKS 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.". 
(d) EFFECTIVE DATE; WAIVER OF LIMITATIONS.— 
26 use 692 note. 
(1) EFFECTIVE DATE.—The amendments made by this sec- Applicability, 
tion 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 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 
period. 
SEC. 102. EXCLUSION OF CERTAIN DEATH BENEFITS. 
(a) IN GENERAL.—Section 101 (relating to certain death bene-
fits) is amended by adding at the end the following new subsection: 
"(i) CERTAIN EMPLOYEE DEATH BENEFITS PAYABLE BY REASON 
OF DEATH OF CERTAIN TERRORIST VICTIMS.— 
"(1) IN GENERAL.—Gross income does not include amounts 
(whether in a single sum or otherwise) 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)). 
"(2) LIMITATION.— 
"(A) IN GENERAL.—Subject to such rules as the Sec-
retary 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 exempt from tax under section 501(a). 
"(3) TREATMENT OF SELF-EMPLOYED INDIVIDUALS.—For pur-
poses of paragraph (1), the term 'employee' includes a self-
employed individual (as defined in section 401(c)(1)).". 
(b) EFFECTIVE DATE; WAIVER OF LIMITATIONS.— 
26 use loi note. 
(1) EFFECTIVE DATE.—The amendment made by this section Applicability, 
shall apply to taxable years ending before, on, or after Sep-
tember 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 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 
period. 
115 STAT. 2430 
PUBLIC LAW 107-134-^AN. 23, 2002 
SEC. 103. ESTATE TAX REDUCTION. 
26 use 2201. 
(a) IN GENERAL.—Section 2201 is amended to read as follows: 
"SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE 
ARMED FORCES AND DEATHS OF VICTIMS OF CERTAIN 
TERRORIST ATTACKS. 
"(a) IN GENERAL,—^Unless the executor elects not to have this 
section apply, in applying sections 2001 and 2101 to the estate 
of a qualified decedent, the rate schedule set forth in subsection 
(c) shall be deemed to be the rate schedule set forth in section 
2001(c). 
"(b) QUALIFIED DECEDENT.—For purposes of this section, the 
term 'qualified decedent' means— 
"(1) any citizen or resident of the United States dying 
while in active service of the Armed Forces of the United 
States, if such decedent— 
"(A) was killed in action while serving in a combat 
zone, as determined under section 112(c), or 
"(B) died as a result of wounds, disease, or injury 
suffered while serving in a combat zone (as determined 
under section 112(c)), and while in the line of duty, by 
reason of a hazard to which such decedent was subjected 
as an incident of such service, and 
"(2) any specified terrorist victim (as defined in section 
692(d)(4)). 
"(c) RATE SCHEDULE.— 
"If the amount with respect 
to 
which the tentative tax to be 
computed is: 
Not over $150,000 
Over $150,000 but not over $200,000 
Over $200,000 but not over $300,000 
Over $300,000 but not over $500,000 
Over $500,000 but not over $700,000 
Over $700,000 but not over $900,000 
Over 
$900,000 
but 
not 
over 
$1,100,000. 
Over 
$1,100,000 
but 
not 
over 
$1,600,000. 
Over 
$1,600,000 
but 
not 
over 
$2,100,000. 
Over 
$2,100,000 
but 
not 
over 
$2,600,000. 
Over 
$2,600,000 
but 
not 
over 
$3,100,000. 
Over 
$3,100,000 
but 
not 
over 
$3,600,000. 
Over 
$3,600,000 
but 
not 
over 
$4,100,000. 
Over 
$4,100,000 
but 
not 
over 
$5,100,000. 
Over 
$5,100,000 
but 
not 
over 
$6,100,000. 
Over 
$6,100,000 
but 
not 
over 
$7,100,000. 
Over 
$7,100,000 
but 
not 
over 
$8,100,000. 
The tentative tax is: 
1 percent of the amount by which such 
amount exceeds $100,000. 
$500 plus 2 percent of the excess over 
$150,000. 
$1,500 plus 3 percent of the excess over 
$200,000. 
$4,500 plus 4 percent of the excess over 
$300,000. 
$12,500 plus 5 percent of the excess over 
$500,000. 
$22,500 plus 6 percent of the excess over 
$700,000. 
$34,500 plus 7 percent of the excess over 
$900,000. 
$48,500 plus 8 percent of the excess over 
$1,100,000. 
$88,500 plus 9 percent of the excess over 
$1,600,000. 
$133,500 plus 10 percent of the excess 
over $2,100,000. 
$183,500 plus 11 percent of the excess 
over $2,600,000. 
$238,500 plus 12 percent of the excess 
over $3,100,000. 
$298,500 plus 13 percent of the excess 
over $3,600,000. 
$363,500 plus 14 percent of the excess 
over $4,100,000. 
$503,500 plus 15 percent of the excess 
over $5,100,000. 
$653,500 plus 16 percent of the excess 
over $6,100,000. 
$813,500 plus 17 percent of the excess 
over $7,100,000. 
PUBLIC LAW 107-134-^AN. 23, 2002 
115 STAT. 2431 
"If the amount with respect to 
which the tentative tax to be 
computed is: 
Over 
$8,100,000 
but 
not 
over 
$9,100,000. 
Over 
$9,100,000 
but 
not 
over 
$10,100,000. 
Over $10,100,000 
The tentative tax is: 
$983,500 plus 18 percent of the excess 
over $8,100,000. 
$1,163,500 plus 19 percent of the excess 
over $9,100,000. 
$1,353,500 plus 20 percent of the excess 
over $10,100,000. 
"(d) DETERMINATION OF UNIFIED CREDIT.—In the case of an 
estate to which this section appHes, subsection (a) shall not apply 
in determining the credit under section 2010.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 2011 is amended by striking subsection (d) 
and by redesignating subsections (e), (f), and (g) as subsections 
(d), (e), and (f), respectively. 
(2) Section 2053(d)(3)(B) is amended by striking "section 
2011(e)" and inserting "section 2011(d)". 
(3) Paragraph (9) of section 532(c) of the Economic Growth 
and Tax Relief Reconciliation Act of 2001 is repealed. 
(c) CLERICAL AMENDMENT.—The item relating to section 2201 
in the table of sections for subchapter C of chapter 11 is amended 
to read as follows: 
"Sec. 2201. Combat zone-related deaths of members of the Armed Forces 
and deaths of victims of certain terrorist attacks.". 
(d) EFFECTIVE DATE; WAIVER OF LIMITATIONS.— 
(1) EFFECTIVE DATE.—The amendments made by this sec-
tion shall apply to estates of decedents— 
(A) dying on or after September 11, 2001; and 
(B) in the case of individuals dying as a result of 
the April 19, 1995, terrorist attack, dying on or after April 
19, 1995. 
(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 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 
period. 
SEC. 104. PAYMENTS BY CHARITABLE ORGANIZATIONS TREATED AS 
EXEMPT PAYMENTS. 
(a) IN GENERAL.—For purposes of the Internal Revenue Code 
of 1986— 
(1) payments made by an organization described in section 
501(c)(3) of such Code by reason of the death, injury, wounding, 
or illness of an individual incurred as the result of the terrorist 
attacks against the United States on September 11, 2001, or 
an attack involving anthrax occurring on or after September 
11, 2001, and before January 1, 2002, shall be treated as 
related to the purpose or function constituting the basis for 
such organization's exemption under section 501 of such Code 
if such payments are made in good faith using a reasonable 
and objective formula which is consistently applied; and 
(2) in the case of a private foundation (as defined in section 
509 of such Code), any payment described in paragraph (1) 
shall not be treated as made to a disqualified person for pur-
poses of section 4941 of such Code. 
26 u s e 2011. 
Ante, p. 75. 
26 u s e 2011 
note. 
AppUcability. 
26 u s e 501 note. 
Anthrax. 
115 STAT. 2432 
PUBLIC LAW 107-134-^AN. 23, 2002 
Applicability. 
(b) EFFECTIVE DATE.—This section shall apply to payments 
made on or after September 11, 2001. 
26 use 108 note. 
SEC. 105. EXCLUSION OF CERTAIN CANCELLATIONS OF INDEBTED-
NESS. 
(a) IN GENERAL.—For purposes of the Internal Revenue Code 
of 1986— 
Anthrax. 
(1) gross income shall not include any amount which (but 
for this section) would be includible in gross income by reason 
of the discharge (in whole or in part) of indebtedness of any 
taxpayer if the discharge is by reason of the death of an 
individual incurred as the result of the terrorist attacks against 
the United States on September 11, 2001, or as the result 
of illness incurred as a result of an attack involving anthrax 
occurring on or after September 11, 2001, and before January 
1, 2002; and 
(2) return requirements under section 6050P of such Code 
shall not apply to any discharge described in paragraph (1). 
Applicability. 
(b) EFFECTIVE DATE.—^This section shall apply to discharges 
made on or after September 11, 2001, and before January 1, 2002. 
Subtitle B—Other Relief Provisions 
SEC. 111. 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 any 
amount received by an individual as a qualified disaster relief 
payment. 
"(b) QUALIFIED DISASTER RELIEF PAYMENT DEFINED.—For pur-
poses 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 necessary personal, 
family, living, or funeral expenses incurred as a result of a 
qualified disaster, 
"(2) to reimburse or pay reasonable and necessary expenses 
incurred for the repair or rehabilitation of a personal residence 
or repair or replacement of its contents to the extent that 
the need for such repair, rehabilitation, or replacement is attrib-
utable 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 wel-
fare, 
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 sec-
tion, the term 'qualified disaster' means— 
PUBLIC LAW 107-134-JAN. 23, 2002 
115 STAT. 2433 
"(1) a disaster which results from a terroristic or miUtary 
action (as defined in section 692(c)(2)), 
"(2) a Presidentially declared disaster (as defined in section 
. 
1033(h)(3)), 
"(3) a disaster which results from an accident involving 
a common carrier, or from any other event, which is determined 
by the Secretary to be of a catastrophic nature, or 
"(4) with respect to amounts described in subsection (b)(4), 
a disaster which is determined by an applicable Federal, State, 
or local authority (as determined 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-emplo3anent, wages, 
or compensation subject to tax. 
"(e) No RELIEF FOR CERTAIN INDIVIDUALS.—Subsections (a) 
and 
(f) shall not apply with respect to any individual identified by 
the Attorney General to have been a participant or conspirator 
in a terroristic action (as so defined), or a representative of such 
individual. 
"(f) 
EXCLUSION OF CERTAIN ADDITIONAL PAYMENTS.—Gross 
income shall not include any amount received as payment under 
section 406 of the Air Transportation Safety and System Stabiliza-
tion Act.". 
(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 Applicability, 
shall apply to taxable years ending on or after September 11, 26 USC139 note. 
2001. 
SEC. 112. AUTHORITY TO POSTPONE CERTAIN DEADLINES AND 
REQUIRED ACTIONS. 
(a) EXPANSION OF AUTHORITY RELATING TO DISASTERS AND 
TERRORISTIC OR MILITARY ACTIONS.—Section 7508A is amended 26USC7508A. 
to read as follows: 
"SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY REA-
SON OF PRESIDENTIALLY DECLARED DISASTER OR 
TERRORISTIC OR MILITARY ACTIONS. 
"(a) IN GENERAL.—In the case of a taxpayer determined by 
the Secretary to be affected by a Presidentially declared disaster 
(as defined in section 1033(h)(3)) or a terroristic or military action 
(as defined in section 692(c)(2)), the Secretary may specify a period 
of up to 1 year that may be disregarded in determining, under 
the internal revenue laws, in respect of any tax liability of such 
taxpayer— 
"(1) whether any of the acts described in paragraph (1) 
of section 7508(a) were performed within the time prescribed 
therefor (determined without regard to extension under any 
other provision of this subtitle for periods after the date (deter-
mined by the Secretary) of such disaster or action), 
"(2) the amount of any interest, penalty, additional amount, 
or addition to the tax for periods after such date, and 
115 STAT. 2434 
PUBLIC LAW 107-134-^AN. 23, 2002 
"(3) the amount of any credit or refund. 
"(b) SPECIAL RULES REGARDING PENSIONS, ETC.—In the case 
of a pension or other employee benefit plan, or any sponsor, adminis-
trator, 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 1 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. 
AppUcability. 
"(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 POST-
26 use 7508. 
PONE.—Section 7508(a)(l)(K) (relating to time to be disregarded) 
is amended by striking "in regulations prescribed under this sec-
tion". 
(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 following new section: 
29 u s e 1148. 
"SEC. 518. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY REASON 
OF P R E S I D E N T I A L L Y DECLARED DISASTER OR TERROR-
ISTIC OR MILITARY ACTIONS. 
"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 Presidentially declared 
disaster (as defined in section 1033(h)(3) of the Internal Revenue 
Code of 1986) or a terroristic 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 1 year which may be disregarded in determining 
the date by which any action is required or permitted to be com-
pleted 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 sen-
tence.". 
(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, adminis-
trator, participant, beneficiary, 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 terroristic or military action (as defined in section 692(c)(2) of 
such Code), the corporation may, notwithstanding any other provi-
sion of law, prescribe, by notice or otherwise, a period of up to 
1 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 reason of the preceding sentence.". 
(d) ADDITIONAL CONFORMING AMENDMENTS.— 
26 use 6404. 
(1) Section 6404 is amended— 
(A) by striking subsection (h); 
PUBLIC LAW 107-134-JAN. 23, 2002 
115 STAT. 2435 
(B) by redesignating subsection (i) as subsection (h); 
and 
(C) by adding at the end the following new subsection: 
"(i) CROSS REFERENCE.— 
"For authority to suspend running of interest, etc. by reason of 
Presidentially declared disaster or terroristic or military action, see 
section 7508A.". 
(2) Section 6081(c) is amended to read as follows: 
"(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 7508^^". 
(e) 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 Presi-
dentially declared disaster or terroristic or military actions.". 
(2) The table of contents for the Employee Retirement 
Income Security Act of 1974 is amended by inserting after 
the item relating to section 517 the following new item: 
"Sec. 518. Authority to postpone certain deadlines by reason of Presi-
dentially declared disaster or terroristic or military actions.". 
(f) 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 respect to any action of 
the Secretary of the Treasury, the Secretary of Labor, or the Pension 
Benefit Guaranty Corporation occurring on or after the date of 
the enactment of this Act. 
SEC. 113. APPLICATION OF CERTAIN PROVISIONS TO TERRORISTIC 
OR MILITARY ACTIONS. 
(a) DISABILITY INCOME.—Section 104(a)(5) (relating to com-
pensation 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)).". 
(b) EXEMPTION FROM INCOME TAX FOR CERTAIN MILITARY OR 
CiviLLysT 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. 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to taxable years ending on or after September 11, 
2001. 
SEC. 114. C L A R I F I C A T I O N OF DUE DATE FOR AIRLINE EXCISE 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: 
26 u s e 6081. 
Applicability. 
26 u s e 6081 
note. 
Applicability. 
26 u s e 104 note. 
49 u s e 40101 
note. 
115 STAT. 2436 
PUBLIC LAW 107-134—JAN. 23, 2002 
"(3) AIRLINE-RELATED DEPOSIT.—For purposes of this sub-
section, 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).". 
49 use 40101 
(b) EFFECTIVE DATE.—The amendment made by this section 
°ote. 
shall take effect as if included in section 301 of the Air Transpor-
tation Safety and System Stabilization Act (Public Law 107-42). 
SEC. 1
1
5
. 
TREATMENT 
OF 
CERTAIN 
STRUCTURED 
SETTLEMENT 
PAY-
MENTS. 
(a) IN GENERAL.—Subtitle E is amended by adding at the 
end the following new chapter: 
"CHAPTER 55—STRUCTURED SETTLEMENT FACTORING 
TRANSACTIONS 
"Sec. 5891. Structured settlement factoring transactions. 
"SEC. 5891. STRUCTURED SETTLEMENT FACTORING TRANSACTIONS. 
"(a) IMPOSITION OF TAX.—There is hereby imposed on any per-
son who acquires directly or indirectly structured settlement pay-
ment rights in a structured settlement factoring transaction a tax 
equal to 40 percent of the factoring discount as determined under 
subsection (c)(4) with respect to such factoring transaction. 
"(b) EXCEPTION FOR CERTAIN APPROVED TRANSACTIONS.— 
"(1) IN GENERAL.—The tax under subsection (a) shall not 
apply in the case of a structured settlement factoring trans-
action in which the transfer of structured settlement pajmaent 
rights is approved in advance in a qualified order. 
"(2) QUALIFIED ORDER.—For purposes of this section, the 
term 'qualified order' means a final order, judgment, or decree 
which— 
"(A) finds that the transfer described in paragraph 
( 1 ) -
"(i) does not contravene any Federal or State 
statute or the order of any court or responsible 
administrative authority, and 
"(ii) is in the best interest of the payee, taking 
into account the welfare and support of the payee's 
dependents, and 
"(B) is issued— 
"(i) under the authority of an applicable State 
statute by an applicable State court, or 
"(ii) by the responsible administrative authority 
(if any) which has exclusive jurisdiction over the under-
lying action or proceeding which was resolved by means 
of the structured settlement. 
"(3) APPLICABLE STATE STATUTE.—For purposes of this sec-
tion, the term 'applicable State statute' means a statute pro-
viding for the entry of an order, judgment, or decree described 
in paragraph (2)(A) which is enacted by— 
"(A) the State in which the payee of the structured 
settlement is domiciled, or 
"(B) if there is no statute described in subparagraph 
(A), the State in which either the party to the structured 
settlement (including an assignee under a qualified assign-
ment under section 130) or the person issuing the funding 
PUBLIC LAW 107-134-^AN. 23, 2002 
115 STAT. 2437 
asset for the structured settlement is domiciled or has 
its principal place of business. 
"(4) APPLICABLE STATE COURT.—^For purposes of this 
section— 
"(A) IN GENERAL.—The term 'applicable State court' 
means, with respect to any applicable State statute, a 
court of the State which enacted such statute. 
"(B) SPECIAL RULE.—In the case of an applicable State 
statute described in paragraph (3)(B), such term also 
includes a court of the State in which the payee of the 
structured settlement is domiciled. 
"(5) QUALIFIED ORDER DISPOSITIVE.—^A qualified order shall 
be treated as dispositive for purposes of the exception under 
this subsection. 
"(c) DEFINITIONS.—For purposes of this section— 
"(1) 
STRUCTURED 
SETTLEMENT.—The term 
'structured 
settlement' means an arrangement— 
"(A) which is established by— 
"(i) suit or agreement for the periodic pa3anent 
of damages excludable from the gross income of the 
recipient under section 104(a)(2), or 
"(ii) agreement for the periodic payment of com-
pensation under 
any workers' compensation 
law 
excludable from the gross income of the recipient under 
section 104(a)(1), and 
"(B) under which the periodic payments are— 
"(i) of the character described in subparagraphs 
(A) and (B) of section 130(c)(2), and 
"(ii) payable by a person who is a party to the 
suit or agreement or to the workers' compensation 
claim or by a person who has assumed the liability 
for such periodic payments under a qualified assign-
ment in accordance with section 130. 
"(2) STRUCTURED SETTLEMENT PAYMENT RIGHTS.—The term 
'structured settlement payment rights' means rights to receive 
payments under a structured settlement. 
"(3) STRUCTURED SETTLEMENT FACTORING TRANSACTION.— 
"(A) IN GENERAL.—The term 'structured settlement fac-
toring transaction' means a transfer of structured settle-
ment pa3mient rights (including portions of structured 
settlement payments) made for consideration by means 
of sale, assignment, pledge, or other form of encumbrance 
or alienation for consideration. 
"(B) EXCEPTION.—Such term shall not include— 
"(i) the creation or perfection of a security interest 
in structured settlement payment rights under a 
blanket security agreement entered into with an 
insured depository institution in the absence of any 
action to redirect the structured settlement payments 
to such institution (or agent or successor thereof) or 
otherwise to enforce such blanket security interest as 
against the structured settlement payment rights, or 
"(ii) a subsequent transfer of structured settlement 
payment rights acquired in a structured settlement 
factoring transaction. 
"(4) FACTORING DISCOUNT.—The term 'factoring discoimt' 
means an amount equal to the excess of— 
115 STAT. 2438 
PUBLIC LAW 107-134-^AN. 23, 2002 
26 use 5891 
note. 
Applicability. 
Applicability. 
"(A) the aggregate undiscounted amount of structured 
settlement payments being acquired in the structured 
settlement factoring transaction, over 
"(B) the total amount actually paid by the acquirer 
to the person from whom such structured settlement pay-
ments are acquired. 
"(5) RESPONSIBLE ADMINISTRATIVE AUTHORITY.—The term 
'responsible administrative authority' means the administrative 
authority which had jurisdiction over the underlying action 
or proceeding which was resolved by means of the structured 
settlement. 
"(6) STATE.—The term 'State' includes the Commonwealth 
of Puerto Rico and any possession of the United States. 
"(d) COORDINATION WITH OTHER PROVISIONS.— 
"(1) IN GENERAL.—If the applicable requirements of sections 
72, 104(a)(1), 104(a)(2), 130, and 461(h) were satisfied at the 
time the structured settlement involving structured settlement 
payment rights was entered into, the subsequent occurrence 
of a structured settlement factoring transaction shall not affect 
the application of the provisions of such sections to the parties 
to the structured settlement (including an assignee under a 
qualified assignment under section 130) in any taxable year. 
"(2) No WITHHOLDING OF TAX.—The provisions of section 
3405 regarding withholding of tax shall not apply to the person 
making the payments in the event of a structured settlement 
factoring transaction.". 
(b) CLERICAL AMENDMENT.—The table of chapters for subtitle 
E is amended by adding at the end the following new item: 
"Chapter 55. Structured settlement factoring transactions.". 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—^The amendments made by this section 
(other than the provisions of section 5891(d) of the Internal 
Revenue Code of 1986, as added by this section) shall apply 
to structured settlement factoring transactions (as defined in 
section 5891(c) of such Code (as so added)) entered into on 
or after the 30th day following the date of the enactment 
of this Act. 
(2) CLARIFICATION OF EXISTING LAW.—Section 5891(d) of 
such Code (as so added) shall apply to structured settlement 
factoring transactions (as defined in section 5891(c) of such 
Code (as so added)) entered into before, on, or after such 30th 
day. 
(3) TRANSITION RULE.—In the case of a structured settle-
ment factoring transaction entered into during the period begin-
ning on the 30th day following the date of the enactment 
of this Act and ending on July 1, 2002, no tax shall be imposed 
under section 5891(a) of such Code if— 
(A) the structured settlement payee is domiciled in 
a State (or possession of the United States) which has 
not enacted a statute providing that the structured settle-
ment factoring transaction is ineffective unless the trans-
action has been approved by an order, judgment, or decree 
of a court (or where applicable, a responsible administrative 
authority) which finds that such transaction— 
PUBLIC LAW 107-134-^AN. 23, 2002 
115 STAT. 2439 
(i) does not contravene any Federal or State statute 
or the order of any court (or responsible administrative 
authority); and 
(ii) is in the best interest of the structured settle-
ment payee or is appropriate in light of a hardship 
faced by the payee; and 
(B) the person acquiring the structured settlement pay-
ment rights discloses to the structured settlement payee 
in advance of the structured settlement factoring trans-
action the amounts and due dates of the payments to 
be transferred, the aggregate amount to be transferred, 
the consideration to be received by the structured settle-
ment payee for the transferred pajmients, the discounted 
present value of the transferred payments (including the 
present value as determined in the manner described in 
section 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 deducted from the proceeds of such transaction. 
SEC. 116. PERSONAL EXEMPTION DEDUCTION FOR CERTAIN DIS-
ABILITY TRUSTS. 
(a) IN GENERAL.—Subsection (b) of section 642 (relating to 26USC642. 
deduction for personal exemption) is amended to read as follows: 
"(b) DEDUCTION FOR PERSONAL EXEMPTION.— 
"(1) ESTATES.—^An estate shall be allowed a deduction of 
$600. 
"(2) TRUSTS.— 
"(A) IN GENERAL.—Except as otherwise provided in 
this paragraph, a trust shall be allowed a deduction of 
$100. 
"(B) 
TRUSTS 
DISTRIBUTING 
INCOME 
CURRENTLY.—A 
trust which, under its governing instrument, is required 
to distribute all of its income currently shall be allowed 
a deduction of $300. 
"(C) DISABILITY TRUSTS.— 
"(i) IN GENERAL.^A qualified disability trust shall 
be allowed a deduction equal to the exemption amount 
under section 151(d), determined— 
"(I) by treating such trust as an individual 
described in section 151(d)(3)(C)(iii), and 
"(II) by applying section 67(e) (without the 
reference to section 642(b)) for purposes of deter-
mining the adjusted gross income of the trust, 
"(ii) QUALIFIED DISABILITY TRUST.—For purposes 
of clause (i), the term 'qualified disability trust' means 
any trust if— 
"(I) such trust is a disability trust described 
in subsection (c)(2)(B)(iv) of section 1917 of the 
Social Security Act (42 U.S.C. 1396p), and 
"(II) all of the beneficiaries of the trust as 
of the close of the taxable year are determined 
by the Commissioner of Social Security to have 
been disabled (within the meaning of section 
1614(a)(3) of the Social Security Act, 42 U.S.C. 
1382c(a)(3)) for some portion of such year. 
115 STAT. 2440 
PUBLIC LAW 107-134-^AN. 23, 2002 
A trust shall not fail to meet the requirements of 
subclause (II) merely because the corpus of the trust 
may revert to a person who is not so disabled after 
the trust ceases to have any beneficiary who is so 
disabled. 
"(3) DEDUCTIONS IN LIEU OF PERSONAL EXEMPTION.—The 
deductions allowed by this subsection shall be in lieu of the 
deductions allowed under section 151 (relating to deduction 
for personal exemption).". 
Applicability. 
(b) EFFECTIVE DATE.—The amendment made by this section 
26 use 642 note, 
shall apply to taxable years ending on or after September 11, 
2001. 
TITLE II—DISCLOSURE OF TAX INFOR-
MATION IN TERRORISM AND NA-
TIONAL SECURITY INVESTIGATIONS 
SEC. 201. DISCLOSURE OF TAX INFORMATION IN TERRORISM AND 
NATIONAL SECURITY INVESTIGATIONS. 
(a) 
DISCLOSURE 
WITHOUT 
A 
REQUEST 
OF 
INFORMATION 
RELATING TO TERRORIST ACTIVITIES, ETC.—Paragraph (3) of section 
26 use 6103. 
6103(i) (relating to disclosure of return information to apprise appro-
priate officials of criminal activities 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 disclose in writing return 
information (other than taxpayer return information) 
that may be related to a terrorist incident, threat, 
or activity to the extent necessary to apprise the head 
of the appropriate Federal law enforcement agency 
responsible for investigating or responding to such ter-
rorist incident, threat, or activity. The head of the 
agency may disclose such return information to officers 
and employees of such agency to the extent necessary 
to investigate or respond to such terrorist incident, 
threat, or activity. 
"(ii) 
DISCLOSURE TO THE DEPARTMENT OF JUS-
TICE.—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 purposes of this 
subparagraph, a taxpayer's identity shall not be treated 
as taxpayer return information. 
"(iv) TERMINATION.—No disclosure may be made 
under this subparagraph after December 31, 2003.". 
(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 relating 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 INFORMATION RELATING 
TO TERRORIST ACTIVITIES, ETC.— 
PUBLIC LAW 107-134-^AN. 23, 2002 
115 STAT. 2441 
"(A) 
DISCLOSURE TO LAW ENFORCEMENT AGENCIES.— 
"(i) IN GENERAL.—^Except as provided in paragraph 
(6), upon receipt by the Secretary of a written request 
which meets the requirements of clause (iii), the Sec-
retary may disclose return information (other than tax-
payer return information) to officers and employees 
of any Federal law enforcement agency who are person-
ally and directly engaged in the response to or inves-
tigation 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 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 investiga-
tion and such information 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 i
f
— 
"(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 
terrorist incident, threat, or activity, and 
"(II) the request sets forth the specific reason 
or reasons why such disclosure may be relevant 
to a terrorist incident, threat, or activity. 
"(iv) 
LIMITATION 
ON 
USE 
OF 
INFORMATION.— 
Information disclosed under this subparagraph shall 
be solely for the use of the officers and employees 
to whom such information is disclosed in such response 
or investigation. 
"(B) DISCLOSURE TO INTELLIGENCE AGENCIES.— 
"(i) IN GENERAL.—^Except as provided in paragraph 
(6), upon receipt by the Secretary of a written request 
which meets the requirements of clause (ii), the Sec-
retary may disclose return information (other than tax-
payer return 
information) 
to those officers 
and 
employees of the Department of Justice, the Depart-
ment of the Treasury, and other Federal intelligence 
agencies who are personally and directly engaged in 
the collection or analysis of intelligence and counter-
intelligence information or investigation concerning 
any terrorist incident, threat, or activity. For purposes 
of the preceding sentence, the information disclosed 
under the preceding sentence shall be solely for the 
use of such officers and employees in such investiga-
tion, collection, or analysis. 
"(ii) REQUIREMENTS.—A request meets the require-
ments of this subparagraph if the request— 
"(I) is made by an individual described in 
clause (iii), and 
"(II) sets forth the specific reason or reasons 
why such disclosure may be relevant to a terrorist 
incident, threat, or activity. 
115 STAT. 2442 
PUBLIC LAW 107-134-^AN. 23, 2002 
"(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 Department of the 
Treasury who is appointed by the President with 
the advice and consent of the Senate or who is 
the Director of the United States Secret Service, 
and 
"(11) who is responsible for the collection and 
analysis of intelligence and counterintelligence 
information 
concerning any terrorist 
incident, 
threat, or activity. 
"(iv) TAXPAYER IDENTITY.—For purposes of this 
subparagraph, a taxpayer's identity shall not be treated 
as taxpayer return information. 
"(C) DISCLOSURE UNDER EX PARTE ORDERS.— 
"(i) IN GENERAL.—Except as provided in paragraph 
(6), any return or return information with respect to 
any specified taxable 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 pro-
vided 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 counterintel-
ligence information concerning any terrorist incident, 
threat, or activity. Return or return information opened 
to inspection or disclosure pursuant to the preceding 
sentence shall be solely for the use of such officers 
and employees in the investigation, response, or anal-
ysis, and in any judicial, administrative, or grand jury 
proceedings, pertaining to such terrorist incident, 
threat, or activity. 
"(ii) APPLICATION FOR ORDER.—^The Attorney Gen-
eral, the Deputy Attorney General, 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 determines on the basis of the facts sub-
mitted by the applicant that— 
"(I) there is reasonable cause to believe, based 
upon information believed to be reliable, that the 
return or return information may be relevant to 
a matter relating to such terrorist incident, threat, 
or activity, and 
"(II) the return or return information is sought 
exclusively for use in a Federal investigation, anal-
ysis, or proceeding 
concerning 
any 
terrorist 
incident, threat, or activity. 
"(D) SPECIAL RULE FOR EX PARTE DISCLOSURE BY THE 
IRS.— 
"(i) IN GENERAL.—Except as provided in paragraph 
(6), the Secretary may authorize an application to a 
PUBLIC LAW 107-134^^AN. 23, 2002 
115 STAT. 2443 
Federal district court judge or magistrate for the order 
referred to in subparagraph (C)(i). Upon such applica-
tion, 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 subpara-
graph (C)(iiXI) are met. 
"(ii) 
LIMITATION 
ON 
USE 
OF 
INFORMATION.— 
Information disclosed under clause (i)— 
"(I) may be disclosed only to the extent nec-
essary to apprise the head of the appropriate Fed-
eral law enforcement agency responsible for inves-
tigating or responding to a terrorist incident, 
threat, or activity, and 
"(II) shall be solely for use in a Federal inves-
tigation, analysis, or proceeding concerning any 
terrorist incident, threat, or activity. 
The head of such Federal agency may disclose such 
information to officers and employees of such agency 
to the extent necessary to investigate or respond to 
such terrorist incident, threat, or activity. 
"(E) TERMINATION.—No disclosure may be made under 
this paragraph after December 31, 2003.". 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6103(a)(2) is amended by inserting "any local 26USC6103. 
law enforcement agency receiving information under subsection 
(i)(7)(A)," after "State,". 
(2) Section 6103(b) is amended by adding at the end the 
following new paragraph: 
"(11) TERRORIST INCIDENT, THREAT, OR ACTIVITY.—The term 
'terrorist incident, threat, or activity' means an incident, threat, 
or activity involving an act of domestic terrorism (as defined 
in section 2331(5) of title 18, United States Code) or inter-
national terrorism (as defined in section 2331(1) of such title).". 
(3) The heading of section 6103(i)(3) is amended by 
inserting "OR TERRORIST" after "CRIMINAL". 
(4) Paragraph (4) of section 6103(i) is amended— 
(A) in subparagraph (A) by inserting "or (7)(C)" after 
"paragraph (1)"; and 
(B) in subparagraph (B) by striking "or (3)(A)" and 
inserting "(3)(A) or (C), or (7)". 
(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 
inserting 
"(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),". 
115 STAT. 2444 
PUBLIC LAW 107-134-JAN. 23, 2002 
26 use 6103. 
(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— 
(A) by striking "or" at the end of paragraph (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 following new 
paragraph: 
"(3) to the disclosure of tax convention information 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 information provided by a foreign govern-
ment, no disclosure 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),". 
Applicability. 
(d) EFFECTIVE DATE.—The amendments made by this section 
26 use 6103 
shall apply to disclosures made on or after the date of the enactment 
'
^
^
^
^
^ 
of this Act. 
TITLE III—NO IMPACT ON SOCIAL 
SECURITY TRUST FUNDS 
42 u s e 401 note. 
SEC. 301. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS. 
(a) IN GENERAL.—Nothing in this Act (or an amendment made 
by this Act) shall be construed to alter or 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 balances 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 Sec-
retary 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 frequently than quarterly, from the general revenues of 
the Federal Government an amount sufficient so as to ensure 
PUBLIC LAW 107-134^^AN. 23, 2002 
115 STAT. 2445 
that the income and balances of such trust funds are not 
reduced as a result of the enactment of this Act. 
Approved January 23, 2002. 
LEGISLATIVE HISTORY—H.R. 2884 (S. 1440): 
CONGRESSIONAL RECORD, Vol. 147 (2001): 
Sept. 13, considered and passed House. 
Nov. 16, considered and passed Senate, amended. 
Dec. 13, House concurred in Senate amendments with an amendment. 
Dec. 20, Senate concurred in House amendment with an amendment. House 
concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): 
Jan. 23, Presidential remarks.