•S^'~ PUBLIC LAW 107-134-^AN. 23, 2002 115 STAT. 2429 (1) The heading of section 692 is amended to read as 26 USC 692. follows: " SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES AND VIC- TIMS OF CERTAIN TERRORIST ATTACKS ON DEATH. ". (2) The item relating to section 692 in the table of sections for part II of subchapter J of chapter 1 is amended to read as follows: "Sec. 692. Income taxes of members of Armed Forces and victims of certain terrorist attacks on death.". (d) EFFECTIVE DATE; WAIVER OF LIMITATIONS. — 26 USC 692 note. (1) EFFECTIVE DATE. —The amendments made by this sec- Applicability, tion shall apply to taxable years ending before, on, or after September 11, 2001. (2) WAIVER OF LIMITATIONS. — If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period. SEC. 102. EXCLUSION OF CERTAIN DEATH BENEFITS. (a) IN GENERAL.—Section 101 (relating to certain death benefits) is amended by adding at the end the following new subsection: " (i) CERTAIN EMPLOYEE DEATH BENEFITS PAYABLE BY REASON OF DEATH OF CERTAIN TERRORIST VICTIMS. — "(1) IN GENERAL.— Gross income does not include amounts (whether in a single sum or otherwise) paid by an employer by reason of the death of an employee who is a specified terrorist victim (as defined in section 692(d)(4)). " (2) LIMITATION.— "(A) IN GENERAL.— Subject to such rules as the Secretary may prescribe, paragraph (1) shall not apply to amounts which would have been payable after death if the individual had died other than as a specified terrorist victim (as so defined). " (B) EXCEPTION. — Subparagraph (A) shall not apply to incidental death benefits paid from a plan described in section 401(a) and exempt from tax under section 501(a). " (3) TREATMENT OF SELF-EMPLOYED INDIVIDUALS. —For purposes of paragraph (1), the term 'employee' includes a self- employed individual (as defined in section 401(c)(1)).". (b) EFFECTIVE DATE; WAIVER OF LIMITATIONS. — 26 USC loi note. (1) EFFECTIVE DATE.— The amendment made by this section Applicability, shall apply to taxable years ending before, on, or after September 11, 2001. (2) WAIVER OF LIMITATIONS. — If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period.
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