An original bill to extend the time for performing certain acts under the internal revenue laws for individuals performing services as part of the Desert Shield operation.

Amends the Internal Revenue Code to declare that any individual who performed Desert Shield services (and the individual's spouse) shall be entitled to an extension of time for performing certain tax-related acts by reason of service in a combat zone.

Allows the payment of interest on any overpayments due such individuals starting April 15. (Generally interest will be paid only on refunds made more than 45 days after a return is filed.)

Applies the time extension granted by this Act to individuals hospitalized inside as well as outside the United States. Limits the time extension inside the United States to five years of continuous hospitalization, but denies this same extension to the individual's spouse.