Heroes Earned Retirement Opportunities Act

(This measure has not been amended since it was passed by the House on May 9, 2006. The summary of that version is repeated here.)

Heroes Earned Retirement Opportunities Act - Amends the Internal Revenue Code to allow members of the Armed Forces to include their combat zone compensation (otherwise excludable from gross income) in their earned income for purposes of determining their allowable tax deduction for contributions to retirement savings plans.

Makes such provisions applicable to: (1) taxable years beginning after December 31, 2003; and (2) retirement savings contributions made for any taxable year beginning after such date and ending before enactment of this Act. Waives any limitation period otherwise applicable to refund claims relating to contributions made in years prior to enactment if such claims are made before one year after such a contribution is made. Allows a three-year period after a contribution is made for the assessment of any tax deficiency relating to such contribution.

[109th Congress Public Law 227]
[From the U.S. Government Publishing Office]


[DOCID: f:publ227.109]

[[Page 120 STAT. 385]]

Public Law 109-227
109th Congress

                                 An Act


 
To amend the Internal Revenue Code of 1986 to allow members of the Armed 
     Forces serving in a combat zone to make contributions to their 
   individual retirement plans even if the compensation on which such 
   contribution is based is excluded from gross income, and for other 
            purposes. <<NOTE: May 29, 2006 -  [H.R. 1499]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Heroes Earned Retirement 
Opportunities Act.>> assembled,

SECTION 1. <<NOTE: 26 USC 1 note.>> SHORT TITLE.

    This Act may be cited as the ``Heroes Earned Retirement 
Opportunities Act''.

SEC. 2. COMBAT ZONE COMPENSATION TAKEN INTO ACCOUNT FOR PURPOSES OF 
            DETERMINING LIMITATION AND DEDUCTIBILITY OF CONTRIBUTIONS TO 
            INDIVIDUAL RETIREMENT PLANS.

    (a) In General.--Subsection (f) of section 219 of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 219.>> is amended by redesignating 
paragraph (7) as paragraph (8) and by inserting after paragraph (6) the 
following new paragraph:
            ``(7) Special rule for compensation earned by members of the 
        armed forces for service in a combat zone.--For purposes of 
        subsections (b)(1)(B) and (c), the amount of compensation 
        includible in an individual's gross income shall be determined 
        without regard to section 112.''.

    (b)  <<NOTE: 26 USC 219 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2003.

    (c)  <<NOTE: 26 USC 219 note.>> Contributions for Taxable Years 
Ending Before Enactment.--
            (1) In general.--In the case of any taxpayer with respect to 
        whom compensation was excluded from gross income under section 
        112 of the Internal Revenue Code of 1986 for any taxable year 
        beginning after December 31, 2003, and ending before the date of 
        the enactment of this Act, any contribution to an individual 
        retirement plan made on account of such taxable year and not 
        later than the last day of the 3-year period beginning on the 
        date of the enactment of this Act shall be treated, for purposes 
        of such Code, as having been made on the last day of such 
        taxable year.
            (2) Waiver of limitations.--
                    (A) Credit or refund.--If the credit or refund of 
                any overpayment of tax resulting from a contribution to 
                which paragraph (1) applies is prevented at any time by 
                the operation of any law or rule of law (including res 
                judicata), such credit or refund may nevertheless be 
                allowed

[[Page 120 STAT. 386]]

                or made if the claim therefor is filed before the close 
                of the 1-year period beginning on the date that such 
                contribution is made (determined without regard to 
                paragraph (1)).
                    (B) Assessment of deficiency.--The period for 
                assessing a deficiency attributable to a contribution to 
                which paragraph (1) applies shall not expire before the 
                close of the 3-year period beginning on the date that 
                such contribution is made. Such deficiency may be 
                assessed before the expiration of such 3-year period 
                notwithstanding the provisions of any other law or rule 
                of law which would otherwise prevent such assessment.
            (3) Individual retirement plan defined.--For purposes of 
        this subsection, the term ``individual retirement plan'' has the 
        meaning given such term by section 7701(a)(37) of such Code.

    Approved May 29, 2006.

LEGISLATIVE HISTORY--H.R. 1499:
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CONGRESSIONAL RECORD:
                                                        Vol. 151 (2005):
                                    May 23, considered and passed House.
                                    Nov. 15, considered and passed 
                                        Senate, amended.
                                                        Vol. 152 (2006):
                                    May 9, House concurred in Senate 
                                        amendement with an amendment 
                                        pursuant to H. Res. 803.
                                    May 18, Senate concurred in House 
                                        amendment.

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