§ 692.
Income taxes of members of Armed Forces, astronauts, and victims of certain terrorist attacks on death
(a)
General rule
In the case of any individual who dies while in active service as a member of the Armed Forces of the United States, if such death occurred while serving in a combat zone (as determined under section 112) or as a result of wounds, disease, or injury incurred while so serving—
(1)
any tax imposed by this subtitle shall not apply with respect to the taxable year in which falls the date of his death, or with respect to any prior taxable year ending on or after the first day he so served in a combat zone; and
(2)
any tax under this subtitle and under the corresponding provisions of prior revenue laws for taxable years preceding those specified in paragraph (1) which is unpaid at the date of his death (including interest, additions to the tax, and additional amounts) shall not be assessed, and if assessed the assessment shall be abated, and if collected shall be credited or refunded as an overpayment.
(c)
Certain military or civilian employees of the United States dying as a result of injuries
(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 as a result of wounds or injury which was incurred while the individual was a military or civilian employee of the United States and which was incurred 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 paragraph (1), the term “terroristic or military action” means—
(A)
any terroristic activity which a preponderance of the evidence indicates was 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
(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
(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 after 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 September 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.
(5)
Relief with respect to astronauts
([Aug. 16, 1954, ch. 736], [68A Stat. 238]; [Pub. L. 93–597, § 4(a)], Jan. 2, 1975, [88 Stat. 1952]; [Pub. L. 94–455, title XIX, § 1901(a)(92)], Oct. 4, 1976, [90 Stat. 1780]; [Pub. L. 94–569, § 3(c)], Oct. 20, 1976, [90 Stat. 2699]; [Pub. L. 97–448, title III, § 307(b)], Jan. 12, 1983, [96 Stat. 2407]; [Pub. L. 98–259, § 1(a)], Apr. 10, 1984, [98 Stat. 142]; [Pub. L. 98–369, div. A, title VII, § 722(g)(2)], (3), July 18, 1984, [98 Stat. 974]; [Pub. L. 99–514, title XVII, § 1708(a)(2)], Oct. 22, 1986, [100 Stat. 2782]; [Pub. L. 107–134, title I], §§ 101(a), (c)(1), 113(b), Jan. 23, 2002, [115 Stat. 2428], 2435; [Pub. L. 108–121, title I, § 110(a)(1)], (3)(A), Nov. 11, 2003, [117 Stat. 1342]; [Pub. L. 113–295, div. A, title II, § 221(a)(67)], Dec. 19, 2014, [128 Stat. 4048].)