An Act to modify the tax treatment of members of the Armed Forces of the United States and civilian employees who are prisoners of war or missing in action, and for other purposes.

(LATEST SUMMARY)

Exempts from the income tax the compensation of members of the Armed Forces during the period of time in which they are hospitalized as a result of disease or injury incurred while serving in a combat zone, for a period of up two years beyond the cessation of combatant activities.

Permits the spouse of a serviceman missing in action to file a joint return for any taxable year beginning within two years after the cessation of combatant activities.

Declares valid the election of a spouse of a missing serviceman to file a joint return even though it is later found that such serviceman died in an earlier year.

Stipulates that the election to file a joint return may be revoked (1) by either the returning serviceman or the spouse prior to the due date for the taxable year, or (2) in cases which it is determined that the missing serviceman has died, by the executor or administrator of the deceased's estate by filing a separate return for the deceased.

Confers surviving spouse status to one whose spouse is missing in action from the date on which it is determined that the missing spouse died or a date two years after the cessation of combat activities whichever is earlier.

Forgives, for a period of up to two years beyond the cessation of combatant activities, the tax on the income of a serviceman dying while in a missing status when such serviceman served in a combat zone and was listed as missing, although it is subsequently determined that he died a year previous to that in which his missing status was changed.

Postpones specified filing deadlines for persons whose spouses are serving in a combat zone.

Extends tax treatment to the crew of the USS Pueblo comparable to that given those persons listed as missing during the Vietnam conflict.

Removes the requirement that there be an induction period in order to entitle servicemen to combat zone tax benefits.