A bill to amend the Internal Revenue Code of 1986 to exclude from income the compensation received for active service as a member of the Armed Forces of the United States in a dangerous foreign area.

Amends the Internal Revenue Code to exclude from gross income compensation received for active service as a member of the armed forces for any month served in a dangerous foreign area. (Current provisions exclude such income for any month served in a combat zone.) Increases from $500 to $2,000 the compensation excluded from the gross income of commissioned officers.