An act to amend the Internal Revenue Code of 1954 to exempt from Federal income taxes certain military and civilian employees of the United States dying as a result of injuries sustained overseas.
PL 98-259 (H.R.4206), enacted 04/10/1984

98 STAT. 142 
PUBLIC LAW 98-259—APR. 10, 1984 
Public Law 98-259 
98th Congress 
An Act 
A 
10 1Q84 
"^^ amend the Internal Revenue Code of 1954 to exempt from Federal income taxes 
Apr, iu, ivoi 
certain military and civilian employees of the United States dying as a result of 
[H.R. 4206] 
injuries sustained overseas. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. INCOME TAXES OF CERTAIN MILITARY AND CIVILIAN 
EMPLOYEES OF THE UNITED STATES DYING AS A RESULT 
OF INJURIES SUSTAINED OVERSEAS. 
(a) GENERAL RULE.—Section 692 of the Internal Revenue Code of 
26 use 692. 
1954 (relating to income taxes of members of the Armed Forces on 
death) is amended by adding at the end thereof the following new 
subsection: 
"(c) CERTAIN MIUTARY OR CIVILIAN EMPLOYEES OF THE UNITED 
STATES DYING AS A RESULT OF INJURIES SUSTAINED OVERSEAS.— 
"(1) IN GENERAL.—In the case of any individual who dies while 
a military or civilian employee of the United States, if such 
death occurs £is a result of wounds or injury incurred outside 
the United States in a terroristic or military action, any tax 
imposed by this subtitle shall not apply— 
"(A) with respect to the taxable year in which falls the 
date of his 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 or injury were incurred. 
"(2) TERRORISTIC OR MILITARY ACTION.—For purposes of para-
graph (1), the term 'terroristic or military action' means— 
"(A) any terroristic activity directed against the United 
States or any of its allies, and 
"(B) any military action involving the Armed Forces of 
the United States and resulting from violence or aggression 
against the United States or any of its allies (or threat 
thereof). 
For purposes of the preceding sentence, the term 'military 
action' does not include training exercises. 
"(3) TREATMENT OF MULTINATIONAL FORCES.—For purposes of 
paragraph (2), any multinational force in which the United 
States is participating shall be treated as an ally of the United 
States.". 
PUBLIC LAW 98-259—APR. 10, 1984 
98 STAT. 143 
(b) EFFECTIVE DATE.— 
26 use 692 note. 
(1) IN GENERAL,—The amendment made by subsection (a) 
shall apply with respect to all taxable years (whether beginning 
before, on, or after the date of enactment of this Act) of individ-
uals dying after December 31, 1979, as a result of wounds or 
injuries incurred after such date. 
(2) STATUTE OF UMITATIONS WAIVED.—Notwithstanding sec-
tion 6511 of the Internal Revenue Code of 1954, the time for 
26 use 65ii. 
filing a claim for credit or refund of any overpajrment of tax 
resulting from the amendment made by subsection (a) shall not 
expire before the date 1 year after the date of the enactment of 
this Act. 
Approved April 10, 1984. 
LEGISLATIVE HISTORY—H.R. 4206: 
SENATE REPORT No. 98-364 (eomm. on Finance). 
CONGRESSIONAL RECORD, Vol. 130 (1984): 
Feb. 22, considered and passed House. 
Apr. 5, considered and passed Senate.