Fallen Heroes Tax Fairness Act of 2007

Fallen Heroes Tax Fairness Act of 2007 - Amends the Internal Revenue Code to revise provisions exempting deceased members of the Armed Forces who die from wounds, disease, or injury incurred while serving in a combat zone from income tax to extend the tax exemption to the last taxable year ending before such wounds, disease, or injury were incurred.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 116 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 116

  To amend the Internal Revenue Code of 1986 to expand the income tax 
  forgiveness for members of the Armed Forces who die as a result of 
 wounds, disease, or injury incurred while serving in a combat zone to 
include forgiveness for the last taxable year ending before the wounds, 
                    disease, or injury are incurred.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2007

Mrs. Jo Ann Davis of Virginia 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 expand the income tax 
  forgiveness for members of the Armed Forces who die as a result of 
 wounds, disease, or injury incurred while serving in a combat zone to 
include forgiveness for the last taxable year ending before the wounds, 
                    disease, or injury are incurred.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fallen Heroes Tax Fairness Act of 
2007''.

SEC. 2. EXPANSION OF INCOME TAX FORGIVENESS FOR MEMBERS OF THE ARMED 
              FORCES WHO DIE AS A RESULT OF WOUNDS, DISEASE, OR INJURY 
              INCURRED WHILE SERVING IN A COMBAT ZONE.

    (a) In General.--Paragraph (1) of section 692(a) of the Internal 
Revenue Code of 1986 (relating to income taxes of members of Armed 
Forces, astronauts, and victims of certain terrorist attacks on death) 
is amended to read as follows:
            ``(1) any tax imposed by this subtitle shall not apply with 
        respect to--
                    ``(A) the taxable year in which falls the date of 
                his death, and
                    ``(B) any prior taxable year which--
                            ``(i) ends on or after the first day he so 
                        served in a combat zone, or
                            ``(ii) ends before such first day and is 
                        the last taxable year ending before the taxable 
                        year in which the wounds, disease, or injury 
                        were incurred; and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to the taxable years of individuals whose death occurs on or after 
September 11, 2001.
    (c) Waiver of Limitations.--If refund or credit of any overpayment 
of tax resulting from the amendment 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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