Armed Forces Tax Fairness Act of 2003
Latest action · Feb 11, 2003 Placed on Senate Legislative Calendar under General Orders. Calendar No. 11.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedFeb 11, 2003
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Includes among the uniformed services: (1) the armed forces; (2) the commissioned corps of the National Oceanic and Atmospheric Administration; and (3) the commissioned corps of the Public Health Service.
Makes such provisions effective as if included in section 312 of the Taxpayer Relief Act of 1997.
States that if a refund or credit resulting from this section is prevented before the close of the one-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 be allowed if claimed before the close of such period.
(Sec. 102) Excludes from gross income as a qualified military benefit the amount of the death gratuity payable under chapter 75 of title 10 of the United States Code, effective with respect to deaths occurring after September 10, 2001.
(Sec. 103) Exempts amounts received under the Homeowners Assistance Program from inclusion as gross income.
(Sec. 104) Extends combat zone filing rules to contingency operations.
(Sec. 105) Includes ancestors or lineal descendants of past or present members of the armed forces or of cadets as qualifying members of veterans' organizations for purposes of such organizations' tax-exempt status determination.
(Sec. 106) Includes dependent care assistance provided under a dependent care assistance program for a member of the uniformed services by reason of such member's status or service as an income-excludable qualified military benefit.
(Sec. 107) Exempts distributions from an education individual retirement account from the ten percent additional tax for non-educational use: (1) if made for an account holder at the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy; and (2) to the extent that the distribution does not exceed the costs of advanced education.
(Sec. 108) Suspends the tax-exempt status of a designated terrorist organization (as defined by this Act). Denies: (1) deductions for contributions made to such an organization; and (2) administrative or judicial challenge to such suspension or denial. Provides for refund or credit in a case of erroneous designation.
(Sec. 109) Provides a deduction for itemizers and non-itemizers for unreimbursed overnight travel, meals, and lodging expenses of National Guard and Reserve members who must travel more than 100 miles away from home and stay overnight as part of their official duties.
(Sec. 110) Provides tax relief for families of the Columbia Space Shuttle by making the tax relief provisions applicable to terrorist attack victims applicable to the Columbia Space Shuttle.
Title II: Other Provisions - (Sec. 201) Establishes Internal Revenue Service (IRS) service user fee authority through September 30, 2013. Sets forth program criteria and average fee requirements.
(Sec. 202) Authorizes IRS to enter into partial payment installment agreements with taxpayers. Requires review of such agreements at least every two years. Makes such provision effective for agreements entered into on or after the date of enactment of this Act.
(Sec. 203) Revises IRC expatriation tax provisions.
States that all property of a "covered expatriate" (a U.S. citizen who relinquishes citizenship, or a long-term U.S. resident who ceases to be a lawful permanent resident or who commences foreign residency under the provisions of a tax treaty) shall be treated as sold on the day before the "expatriation date" for its fair market value, and that gain (in excess of $600,000) and loss shall be taken into account for the taxable year of the sale (with subsequent adjustment). Permits an individual to defer payments of the additional tax imposed by such deemed sale (but not beyond such person's death). Sets forth interest provisions. Requires provision of tax payment security.
Exempts certain U.S. citizens from being treated as a covered expatriate who: (1) became a citizen of the United States and another country at birth; or (2) relinquished U.S. citizenship before reaching 18 and 1/2 years old.
Permits an individual to make an irrevocable decision to be taxed as a U.S. citizen with respect to all property otherwise covered by the expatriation provisions. Requires an individual to: (1) furnish tax payment security; and (2) waive any rights under U.S. treaties that would preclude assessment or collection of relevant tax.
Excludes certain U.S. real property interests from the provisions of this Act. Subjects the following retirement plans to the provisions of this Act: (1) qualified retirement plans, including specified annuity plans and individual retirement accounts; (2) specified deferred compensation plans; and (3) foreign retirement or pension plans.
Establishes special rules for covered expatriates' interests in trusts and qualified trusts.
Includes in a recipient's gross income the value of property received by gift or bequest from a covered expatriate, with exceptions for transfers otherwise subject to estate or gift tax. Makes such provisions applicable to gifts and bequests received on or after February 5, 2003, from an individual whose expatriation date occurs after such date.
Makes such expatriate tax provisions, unless otherwise provided for by this Act, effective on or after February 5, 2003.
Amends the Immigration and Nationality Act to deny a former citizen reentry into the United States for noncompliance with the provisions of this title. (Current law denies reentry based upon tax-motivated expatriation.) Permits IRS-Immigration and Naturalization Service information sharing for such purpose. Makes such provisions effective upon enactment of this Act.
Cosponsors
Members who signed on, in the order they did.
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| Senate | Finance Committee | Markup Feb 6, 2003Markup Feb 11, 2003Reported as an original measure Feb 11, 2003 |
Actions 5
Everything that happened, newest first.
- Feb 11, 2003Introduced in Senate
- Feb 11, 2003Committee on Finance. Ordered to be reported without amendment favorably.
- Feb 11, 2003Committee on Finance. Original measure reported to Senate by Senator Grassley. With written report No. 108-3.
- Feb 11, 2003Placed on Senate Legislative Calendar under General Orders. Calendar No. 11.
- Feb 5, 2003Committee on Finance ordered to be reported an original measure.
In the Congressional Record 2
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S4477, S4482 | Chuck Grassley R-IA, Dianne Feinstein D-CA, Max Baucus D-MT | Mar 27, 2003 |
| Senate | Debate and remarks S4097, S4102 | Debbie Stabenow D-MI, Max Baucus D-MT | Mar 20, 2003 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Related bills 3
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 878 | Armed Forces Tax Fairness Act of 2003 | Related bill | Mar 5, 2003 |
| HR 1307 | Armed Forces Tax Fairness Act of 2003 | Related bill | Mar 31, 2003 |
| HR 1664 | Armed Forces Tax Fairness Act of 2003 | Related bill | Apr 10, 2003 |
Titles 4
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- An original bill to amend the Internal Revenue Code of 1986 to improve tax equity for military personnel, and for other purposes.
- Short Titles as Introduced
- Armed Forces Tax Fairness Act of 2003
- Short Titles as Reported to Senate
- Armed Forces Tax Fairness Act of 2003
- Popular Titles
- Military Tax Relief bill
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Administrative procedure
- Americans in foreign countries
- Armed forces abroad
- Armed Forces and National Security
- Armed forces reserves
- Astronautics
- Astronauts
- Atmosphere
- Capital gains tax
- Citizenship
- College costs
- Consumer credit
- Crime and Law Enforcement
- Day care
- Department of Commerce
- Department of Health and Human Services
- Department of the Treasury
- Economics and Public Finance
- Education
- Estate tax
- Expatriation
- Families
- Federal employees
- Foreign service
- Fringe benefits
- Gifts
- Government Operations and Politics
- Health
- Higher education
- Home ownership
- Housing and Community Development
- Housing finance
- Immigration
- Income tax
- Internal revenue law
- International Affairs
- Labor and Employment
- Law
- Marine and coastal resources, fisheries
- Military base closures
- Military dependents
- Military education
- Military operations
- Military personnel
- National Guard
- Oceanographic research
- Public health personnel
- Service academies
- Space activities
- Space shuttles
- Survivors' benefits
- Tax administration
- Tax credits
- Tax deductions
- Tax deferral
- Tax exclusion
- Tax exemption
- Tax liens
- Tax penalties
- Tax refunds
- Tax returns
- Tax-exempt organizations
- Taxation
- Terrorism
- Transportation and Public Works
- Travel costs
- Trusts and trustees
- User charges
- Veterans' organizations
- Visas
- War casualties
Text 1
Each version as it was printed, newest first.
- Feb 11, 2003Placed on Calendar Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.