An Act to modify the tax treatment of members of the Armed Forces of the United States and civilian employees who are prisoners of war or missing in action, and for other purposes.
PL 93-597 (H.R.8214), enacted 01/02/1975

seq, 
26 u s e 112. 
1950 
PUBLIC LAW 93-597-JAN. 2, 1975 
[88 STAT. 
Public Law 93-597 
January 2, 1975 
-^N A C T 
[H. R. 8214] 
rp^ modify the tax treatment of members of the Armed Forces of the United 
States and civilian employees who are prisoners of war or missing in action, 
and for other purposes. 
Be it enacted by the Senate and House of Re'presentatives of the 
Internal Reve 
United States of ATnefica in Congress assembled. 
nue Code of 1954, 
•' 
"^ 
' 
amendments. 
S E C T I O N 1. A M E N D M E N T O F 1954 C O D E . 
Except as otherwise provided in this Act, whenever an amendment 
is expressed in terms of an amendment to a section or other provision, 
the reference shall be considered to be a section or other provision of 
26 use 1 e^ 
the Internal Revenue Code of 1954. 
SEC. 2. CERTAIN COMBAT PAY OF MEMBERS OF THE ARMED FORCES. 
(a) AMENDMENT or SUBSECTIONS (a) AND (b) OF SECTION 112.— 
Subsections (a) and (b) of section 112 (relating to certain combat 
pay of members of the Armed Forces) are each amended— 
(1) by striking out "during an induction period" in paragraph 
(!)• 
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.
.
.
. 
(2) by striking out "during an induction period; but this para-
graph shall not apply for any month during any part of which 
there are no combatant activities in any combat zone as deter-
mined under subsection (c) (3) of this section" in paragraph (2), 
and inserting in lieu thereof "; but this paragraph shall not apply 
for any month beginning more than 2 years after the date of the 
termination of combatant activities in such zone", and 
(3) by adding at the end thereof the following new sentence: 
"With respect to service in the combat zone designated for purposes of 
the Vietnam conflict, paragraph (2) shall not apply to any month 
beginning more than 2 years after the date of the enactment of this 
sentence." 
(b) CONFORMING AMENDMENT.—Subsection (c) of section 112 is 
amended by striking out paragraph (5). 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on July 1,1973. 
SEC. 3. JOINT RETURNS; SURVIVING SPOUSE. 
(a) JOINT RETURNS.—Section 6013 (relating to joint returns of 
income tax by husband and wife) is amended by adding at the end 
thereof the following new subsection: 
"(f) JOINT RETURN WHERE INDIVIDUAL IS IN MISSING STATUS.—For 
purposes of this section and subtitle A— 
"(1) ELECTION BY SPOUSE.—If— 
"(A) an individual is in a missing status (within the 
meaning of paragraph (3)) as a result of service in a combat 
zone (as determined for purposes of section 112), and 
"(B) the spouse of such individual is otherwise entitled 
to file a joint return for any taxable year which begins on 
or before the day which is 2 years after the date designated 
under section 112 as the date of termination of combatant 
activities in such zone, 
then such spouse may elect under subsection (a) to file a joint 
return for such taxable year. With respect to service in the combat 
zone designated for purposes of the Vietnam conflict, no such 
election may be made for any taxable year beginning more than 
2 years after the date of the enactment of this sentence. 
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ote 
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112 
6013 
88 STAT. ] 
PUBLIC LAW 93-597-JAN. 2, 1975 
1951 
"(2) 
EFFECT OF ELECTION.—If the spouse of an individual 
described in paragraph (1) (A) elects to file a joint return under 
subsection (a) for a taxable year, then, until such election is 
revoked— 
"(A) such election shall be valid even if such individual 
died before the beginning of such year, and 
" (B) except for purposes of section 692 (relating to income 
^^ "^*^ ^'^'^' 
taxes of members of the Armed Forces on death), the income 
tax liability of such individual, his spouse, and his estate 
shall be determined as if he were alive throughout the taxable 
year. 
"(3) MISSING STATUS.—For purposes of this subsection— 
"(A) 
UNIFORMED SERVICES.—A member of a uniformed 
service (within the meaning of section 101(3) of title 37 of 
the United States Code) is in a missing status for any period 
for which he is entitled to pay and allowances under section 
552 of such title 37. 
"(B) 
CIVILIAN EMPLOYEES.—An employee (within the 
meaning of section 5561(2) of title 5 of the United States 
Code) is in a missing status for any period for which he is 
entitled to pay and allowances under section 5562 of such 
title 5. 
" (4) MAKING OF ELECTION ; REVOCATION.—An election described 
in this subsection with respect to any taxable year may be made 
by filing a joint return in accordance with subsection (a) and 
under such regulations as may be prescribed by the Secretary or 
his delegate. Such an election may be revoked by either spouse 
on or before the due date (including extensions) for such taxable 
• 
year, and, in the case of an executor or administrator, may be 
revoked by disaffirming as provided in the last sentence of sub-
section (a)(3)." 
(b) SURVIVING SPOUSE.—Section 2(a) (defining surviving spouse) 
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is amended by adding at the end thereof the following new paragraph: 
"(3) SPECIAL RULE WHERE DECEASED SPOUSE WAS IN MISSING 
STATUS.—If an individual was in a missing status 
(within 
the meaning of section 6013(f)(3)) as a result of service in a 
Ante, p. I^SQ. 
combat zone (as determined for purposes of section 112) and if 
^6 use 112., 
such individual remains in such status until the date referred to 
in subparagraph (A) or (B), then, for purposes of paragraph 
(1) (A), the date on which such individual died shall be treated 
as the earlier of the date determined under subparagraph (A) or 
the date determined under subparagraph (B) : 
"(A) the date on which the detennination is made under 
section 556 of title 37 of the United State Code or under sec-
tion 5566 of title 5 of such Code (whichever is applicable) 
that such individual died while in such missing status, or 
"(B) the date which is 2 years after— 
"(i) the date of the enactment of this paragraph, in 
the case of service in the combat zone designated for 
purposes of the Vietnam conflict, or 
"(ii) the date designated under section 112 as the date 
of termination of combatant activities in that zone, in 
the case of any combat zone other than that referred to 
in clause (i)." 
1952 
PUBLIC LAW 93-597-JAN. 2, 1975 
[88 STAT. 
26 use 6013 
note. 
26 use 692. 
Ante, p. 1950. 
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112 
692 
692 
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(c) ErrECTivE DATE.—The amendments made by this section shall 
apply to taxable years ending on or after February 28, 1961. 
SEC. 4. INCOME TAXES OF MEMBERS OF ARMED FORCES ON DEATH. 
(a) AMENDMENT OF SECTION 692.—Section 692 (relating to income 
taxes of members of Armed Forces on death) is amended— 
(1) by striking out "In the case" and inserting in lieu thereof 
" (a) GENERAL KULE.—In the case"; 
(2) by striking out "during an induction period (as defined 
in section 112(c) (5))"; and 
(3) by adding at the end thereof the following new subsection: 
"(b) INDIVIDUALS IN MISSING STATUS.—For purposes of this sec-
tion, in the case of an individual who was in a missing status within 
the meaning of section 6013(f) (3) (A), the date of his death shall be 
treated as being not earlier than the date on which a determination of 
his death is made under section 556 of title 37 of the United States 
Code. The preceding sentence shall not cause subsection (a) (1) to 
apply for any taxable year beginning more than 2 years after— 
" (1) the date of the enactment of this subsection, in the case of 
service in the combat zone designated for purposes of the Vietnam 
conflict, or 
"(2) the date designated under section 112 as the date of ter-
mination of combatant activities in that zone, in the case of any 
combat zone other than that referred to in paragraph (1)." 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply to taxable years ending on or after February 28, 1961. 
(c) 
REFUNDS AND CREDITS RESULTING FROM SECTION 692 OF CODE.— 
If the refund or credit of any overpayment for any taxable year ending 
on or after February 28,1961, resulting from the application of section 
692 of the Internal Revenue Code of 1954 (as amended by subsection 
(a) of this section) is prevented at any time before the expiration of 
one year after the date of the enactment of this Act by the operation of 
any law or rule of law, but would not have been so prevented if claim 
for refund or credit therefor were made on the due date for the return 
for the taxable year of his death (or any later year), refund or credit 
of such overpayment may, nevertheless, be made or allowed if claim 
therefor is filed before the expiration of such one-year period. 
SEC. 5. TIME FOR PERFORMING CERTAIN ACTS POSTPONED BY REA-
SON OF WAR. 
(a) AMENDMENT or SECTION 7508.—Section 7508 (relating to time 
for performing acts postponed by reason of war) is amended by redes-
ignating subsection (b) as subsection (d) and by inserting after sub-
section (a) the following new subsections: 
"(b) APPLICATION TO SPOUSE.—The provisions of this section shall 
apply to the spouse of any individual entitled to the benefits of subsec-
tion (a). The preceding sentence shall not cause this section to apply to 
any spouse for any taxable year beginning more than 2 years after— 
"(1) the date of the enactment of this subsection, in the case 
of service in the combat zone designated for purposes of the Viet-
nam conflict, or 
" (2) the date designated under section 112 as the date of termi-
nation of combatant activities in that zone, in the case of any 
combat zone other than that referred to in paragraph (1). 
88 STAT. ] 
PUBLIC LAW 93-597-JAN. 2, 1975 
1953 
"(c) MISSING STATUS.—The period of service in the area referred 
to in subsection (a) shall include the period during which an individ-
ual entitled to benefits under subsection (a) is in a missing status, 
within the meaning of section 6013(f) (3)." 
>in^e, p. 1950. 
(b) ErrECTivE DATE.—The amendments made by subsection (a) ^^2^ use 7508 
shall apply to taxable years ending on or after February 28,1961. 
SEC. 6. TECHNICAL AMENDMENTS SO THAT CERTAIN PROVISIONS 
WILL APPLY WITHOUT REGARD TO WHETHER OR NOT AN 
INDUCTION PERIOD EXISTS. 
(a) 
SALE OF RESIDENCE.—Section 1034(h) (relating to sale or 
^6 use 1034. 
exchange of residence by members of the Armed Forces) is amended 
by striking out "and during an induction period (as defined in sec-
tion 112(c) (5))". 
(b) NONAPPLICATION OF ADDITIONAL ESTATE TAX.— 
(1) Section 2210 (relating to members of the Armed Forces 
26 use 2201. 
dying during induction period) is amended by striking out "dur-
ing an induction period (as defined in section 112(c) (5)),". 
(2) The heading for such section 2201 is amended to read as 
follows: 
"SEC. 2201. MEMBERS OF THE ARMED FORCES DYING IN COMBAT ZONE 
OR BY REASON OF COMBAT-ZONE-INCURRED WOUNDS, 
ETC.". 
(3) The table of sections for subchapter C of chapter 11 of such 
Code is amended by striking out the item relating to section 2201 
and inserting in lieu thereof the following: 
"Sec. 2201. Members of the Armed Forces dying in combat zone or by 
reason of combat-zone-incurred wounds, etc.". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on July 1,1973. 
SEC. 7. EXTENSION OF SECTION 112(d) OF CODE TO CERTAIN MEM- 
26 use 112. 
BERS OF ARMED FORCES AND CIVILIANS ILLEGALLY 
DETAINED IN 1968. 
(a) I N GENERAL.—The first section of the Act of April 24, 1970, 
entitled "An Act to provide that, for purposes of the Internal Kevenue 
Code of 1954, individuals who were illegally detained during 1968 
by the Democratic People's Kepublic of Korea shall be treated as serv-
ing in a combat zone" (Public Law 91-235) is amended by adding at 
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the end thereof the following new sentence: "For purposes of section 
112(d) of the Internal Kevenue Code of 1954, the period during which 
any member of the Armed Forces of the United States or any employee 
was so detained shall be treated as a period in which such member or 
employee is in a missing status during the Vietnam conflict as a result 
of such conflict." 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) shall 
apply with respect to compensation received for periods of active serv-
ice after December 31, 1967, in taxable years ending after such date. 
If refund or credit of any overpayment for any taxable year resulting 
from the application of the amendment made by subsection (a) is 
prevented at any time before the expiration of one year after the date 
of the enactment of this Act by the operation of any law or rule of 
law, refund or credit of such overpayment may, nevertheless, be made 
or allowed if claim therefor is filed before the expiration of such one-
year period. 
Approved January 2, 1975. 
26 use 1034 
note.