A bill to amend the Internal Revenue Code of 1954 to extend the duration of certain provisions relating to members of the Armed Forces of the United States and civilian employees who are missing in action or hospitalized as a result of wounds, disease, or injury incurred in the Vietnam conflict.

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 94-1729)

Amends the Internal Revenue Code of 1954 to allow the spouse of a person missing in action in the Vietnam conflict to file a joint return until taxable years beginning after January 2, 1978. Entitles such spouse to file as a surviving spouse for two taxable years after January 2, 1978.

Allows members of the Armed Forces to exclude from gross income compensation received for any month during any part of which the member was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone in the Vietnam conflict. Allows enlisted personnel to exclude all such compensation and commissioned officers to exclude up to $500 of such compensation per month. Makes such exclusions applicable through January 1978.

Extends from taxable years beginning after January 2, 1977, to taxable years beginning after January 2, 1978, the date after which the income tax forgiveness for the taxable year in which a member of the Armed Forces dies (or is determined to have died) as a result of combat in the Vietnam conflict will no longer be allowed.