To amend the Internal Revenue Code of 1986 to restore the tax exempt status of death gratuity payments to members of the uniformed services.

Amends the Internal Revenue Code to restore in full the tax exempt status of death gratuity payments to members of the armed services.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3973 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 3973

 To amend the Internal Revenue Code of 1986 to restore the tax exempt 
status of death gratuity payments to members of the uniformed services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2002

Mr. Jones of North Carolina (for himself and Mr. Gutknecht) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to restore the tax exempt 
status of death gratuity payments to members of the uniformed services.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF DEATH 
              GRATUITY PAYMENT.

    (a) In General.--Subsection (b)(3) of section 134 of the Internal 
Revenue Code of 1986 (relating to certain military benefits) is amended 
by adding at the end the following new subparagraph:
                    ``(C) Exception for death gratuity adjustments made 
                by law.--Subparagraph (A) shall not apply to any 
                adjustment to the amount of death gratuity payable 
                under chapter 75 of title 10, United States Code, which 
                is pursuant to a provision of law enacted after 
                December 31, 1990.''.
    (b) Conforming Amendment.--Subparagraph (A) of section 134(b)(3) of 
such Code is amended by striking ``subparagraph (B)'' and inserting 
``subparagraphs (B) and (C)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid after the date of the enactment of this Act.
                                 <all>