HOSTAGE RELIEF ACT OF 1980

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000300030008-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 25
• Document Creation Date: December 20, 2016
• Document Release Date: May 21, 2007
• Sequence Number: 8
• Publication Date: September 19, 1980
• Content Type: OPEN SOURCE

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96TH CONGRESS HOUSE OF REPRESENTATIVES J Rept. 96-
2d Session j 1349, Part 2
L1GTSLV U
FILE O~
Mr. FASCELL, from the Committee on Foreign Affairs,
submitted the following
REPORT
[To accompany H.R. 7085 which on April 17, 1980, was referred Jointly to the
Committee on Foreign Affairs, the Committee on Post Office and Civil
Service, and the Committee on Ways and Means]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the bill
(H.R. 7085) to amend title 5 of the United States Code and the
Internal Revenue Code of 1954 to provide certain benefits to. individ-
uals held hostage in Iran and to similarly situated-individuals; having
considered the same, report favorably thereon with amendments and
recommend that the bill as amended do pass.
The amendments (stated in terms of the page and line numbers of
the introduced bill) are as follows :
(1) Strike out title I (beginning on line 1 of page 2 and ending
on line 12 of page 6) and insert in lieu thereof the following:
TITLE I-SPECIAL PROVISIONS FOR GOVERN-
MENT EMPLOYEES IN A MISSING STATUS AS A
RESULT OF A HOSTILE ACTION ABROAD
SEC. 101. (a) Subchapter VII of chapter 55 of title 5,
United States Code, is amended by inserting at the end there-
of the following new section :
5569. Special provisions for Government employees
in a missing status as a result of a hostile action
abroad
" (a) (1) This section applies with respect : to any, indi-
vidual who the President determines is a Government em-
ployee who is in a missing status on or after. November 4,
1979, for purposes of this section.
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"(2) (A) Notwithstanding section 2105 or section 5561(2)
or (5), of this title, for purposes of this section, the term
`Government employee who is in a missing status' means (as
determined by the President)-
"(i) an individual who is in the civil service or the
uniformed services (subject to subparagraph (B) of
this paragraph) and who is in a missing status as a result
of a hostile action abroad against the United States; and
"(ii) a citizen or resident alien of the United States
whose presence abroad is for the purpose of perform-
ing a Federal function and who, if the individual were
an employee, would be in a missing status (as described
in subparagraphs (A) through (E) of paragraph (5) of
section 5561) as a result of a hostile action abroad against
the United States.
"(B) Subsections (d) and (e) of this section 'do not apply
with respect to members of the armed forces to the extent
that those subsections provide benefits which are identical to
benefits which are provided with respect to members of the
armed forces under any other provision of law. To the extent
that the benefits provided by subsections (d) and (e) of this
section are not identical to benefits which are provided with
respect to members of the armed forces under another pro-
vision of law, the additional benefits provided by those sub-
sections shall be available, in accordance with regulations
prescribed by the President, with respect to members of the
armed forces to whom this section applies.
"(b) (1) The Secretary of the Treasury shall establish a
savings fund to which the head of an agency may allot all
or any portion of the pay and allowances of any Government
employee to whom this section applies-
"(A) which are for pay periods during which the em-
ployee is in a missing status (within the meaning of this
section) ; and
" (B) which are not subject to an allotment under. sec-
tion 5563 of this title, section 553 of title 37, or any other
provision of law.
(2) Amounts so allotted to the savings fund shall bear
interest at a rate yvhich, for any calendar quarter, shall be
equal to the average rate paid on United States Treasury bills
with three-month maturities issued during the preceding
calendar, quarter. Such interest shall be compounded
quarterly
"(3) Amounts may be allotted to the savings fund from pay
and allowances for any pay period ending after November 4,
1979, and before the establishment of the savings fund. Inter-
est on amounts allotted from the pay and allowances for any
such pay period shall be calculated as if the allotment had
occurred at the end of the pay period.
"(4) Amounts in the savings fund credited to a Govern-
ment employee shall be considered as pay and allowances for
purposes of section 5563 of this title (or in the case of a mem-
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ber of a uniformed service, for purposes of section 553 of title
37) and shall otherwise be subject to withdrawal under pro-
cedures which the Secretary of the Treasury shall establish.
"(c) Under regulations prescribed by the President, the
head of an agency may pay (by advancement or reimburse-
ment) any Government employee to whom this section ap-
plies, or any family member (as such term may be defined
in those regulations) or dependent of such a Government em-
ployee, for expenses for medical and health care, and for other
expenses related to such care, which were incurred on or after
November 4, 1979, incident to the fact that the Government
employee was in a missing status (within the meaning of this
section), but only to the extent that those expenses are not
covered by insurance.
"(d) (1) Under regulations prescribed by the President, the
head of an agency shall pay (by advancement or reimburse-
ment) a spouse or dependent child of a Government employee
to whom this section applies for expenses incurred for sub-
sistence, tuition, fees, supplies, books, equipment, and other
educational costs while attending an educational or training
institution.
"(2) (A) Except as provided in subparagraph (B), pay-
ment under paragraph (1) may be made for attendance at
educational courses or training between the ninety-first day
the Government employee is in a missing status (within the
meaning of this section) and the end of the semester or quar-
ter (as appropriate) during which the missing status of the
Government employee is terminated (or such later date as
the President may, under special circumstances, specify), but
not to exceed a total of forty-five months (or the equivalent
thereof in part-time training).
"(E) If the Government employee dies while in a missing
status (within the meaning of this section), or dies as a
result of the hostile action abroad against the United States,
expenses for education and training under paragraph (1)
may be paid, to the extent authorized in the regulations
prescribed by the President, for up to a total of forty-five
months (or the equivalent thereof in part-time training).
"(3) Under regulations prescribed by the President, the
head of an agency may, under such special circumstances as
may be set forth in those regulations, pay (by advancement
or reimbursement) a Government employee to whom this sec-
tion applies for expenses incurred, after the termination of
the employee's missing status, for subsistence, tuition, fees,
supplies, books, equipment, and other educational costs while
attending an educational or training institution. Payment
under this paragraph may be made for educational courses
or training during any semester or quarter (as appropriate)
which begins less than 10 years after the date on which the
employee's missing status is terminated (whether or not the
individual is still a Government employee), except that pay-
ment may not be made under this paragraph for attendance
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at educational courses or training in excess of a total of forty-
five months (or the equivalent thereof in part-time training).
"(4) Payment under this subsection shall not exceed the
maximum amount authorized to be paid under section 1732
of title 38.
"(5) Educational assistance shall be discontinued under
this subsection to any individual if that individual's conduct
or educational progress is unsatisfactory under standards
comparable to those established pursuant to section 1724 of
title 38.
"(6) Regulations prescribed by the President under this
subsection shall provide that the educational assistance pro-
gram under this subsection shall be comparable to the educa-
tional assistance program under chapters 35 and 36 of title
38.
"(e) (1) Under regulations prescribed by the President, a
Government employee to whom this section applies is entitled
to the benefits provided by the Soldiers' and Sailors' Civil
Relief Act of 1940 (50 U.S.C. App. 501 et seq.), including the
benefits provided by section 701 (50 U.S.C. App. 591) but
excluding the benefits provided by sections 104, 105, 106,
400 through 408, 501 through 512, and 514 (50 U.S.C. App.
514, 515. 516, 540 through 548, 561 through 572, and 574).
"(2) In applying such Act for purposes of carrying out
this subsection-
"(A) the term `person in the military service' is
deemed to include a Government employee to whom this
section applies;
"(B) the term `period of military service' is deemed to
include the period during which that Government em-
ployee is in a missing status (within the meaning of this
section) ; and
"(C) references to the secretary of the Army and the
Secretary of the Navy or to the Adjutant General of the
Army, the Chief of Naval Personnel, and the Comman-
dant, United States Marine Corps, are deemed to be refer-
ences to the President.".
(b) The analysis for chapter 55 of title 5, United States
Code, is amended by inserting after the item relating to sec-
tion 5568 the following new item :
5569. Special provisions for Government employees in
a missing status as a result of a hostile action
abroad.".
(c) Paragraph (2) of section 5561 of title 5, United States
Code, is amended by inserting ", except as provided in section
5569 (a) (2)," after "means".
SEc. 102. The amendments made by section 101 shall be
effective as of November 4,1979.
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(2) Page 7, strike out lines 23 through 25 and insert in lieu thereof
the following :
term "employee" means an individual (other than a member
of the Armed Forces of the United States) who is a Govern-
ment employee within the meaning of section 5569 (a) (2) of
title 5, United States Code.
(3) Page 9, beginning in line 15, strike out "has the meaning given
to such term by section 5569(d)" and insert in lieu thereof "means an
individual (other than a member of the Armed Forces of the United
States) who is a Government employee within the meaning of sec-
tion 5569(a) (2)".
(4) Page 13, line 19, strike out "an" and insert in lieu thereof "a
Government"; and in line 20, strike out "5569(d)" and insert in lieu
thereof "5569 (a) (2) ".
(5) Page 15, after line 6, add the following new title :
TITLE III-TREATMENT OF THE HOSTAGES
IN IRAN
SEC. 301. (a) The Congress finds that-
(1) the continued illegal and unjustified detention of
the American hostages by the Government of Iran has
resulted in the deterioration of relations between the
United States and Iran; and
(2) the protracted length and the conditions of their
confinment have reportedly endangered the physical and
mental well-being of the hostages.
(b) Therefore, it is the sense of the Congress that the
President should make a formal request of the International
Committee of the Red Cross to-
(1) make regular and periodic visits to the American
hostages being held in Iran for the purpose of deter-
mining whether the hostages are being treated in a
humane and decent manner and whether they are re-
ceiving proper medical attention;
(2) urge other countries to solicit the cooperation of
the Government of Iran in the visits to the hostages by
the International Committee of the Red Cross; and
(3) report to the United States its findings after each
such visit.
COMMITTEE ACTION
On April 17, 1980, Hon. Dante B. Fascell (for himself and Mr.
Ullman, Mr. Zablocki, Mr. Broomfield, Mr. Buchanan, and Mr. Der-
winski) introduced H.R. 7085, which was jointly referred to the Com-
mittee on Foreign Affairs, Committee'on Post Office and Civil Service,
and the Committee on Ways and Means. On April 22, 1980, the bill
was referred to the Subcommittee on International Operations by Hon.
Clement J. Zablocki, chairman of, the Committee on Foreign Affairs.
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On July 24, 1980, the Subcommittee on International Operations
held an open hearing on H.R. 7085 during which testimony was re-
ceived from Hon. Ben H. Read, Under Secretary of State for Manage-
ment; Maj. Gen. R. Dean Tice, Deputy Assistant Secretary of: Defense
for Military and Personnel Policy ; and Louisa L. Kennedy, spokes-
person for FLAG (Family Liaison Action Group), which is com-
posed of families and relatives of the hostages being held in Iran.
The subcommittee held an open markup session on September 3 on
the legislation and reported to the full committee, H.R. 7085, as
amended. On Sepember 10 the full committee met in open session to
consider the bill and ordered it favorably reported, as amended, by
voice vote, a quorum being present.
The purpose of the legislation, as amended, is to provide certain
relief-benefits to U.S. hostages in Iran and their families, as well as
to U.S. Government employees in future hostage situations. The bene-
fits provided would apply to civilian and military employees of the
U.S Government -and are based on those benefits available to U.S.
military prisoners of war from the Vietnam era. The benefits include
the following : (1) establishment of a special interest-bearing savings
fund for deposit of hostages' salaries; (2) reimbursement for expenses
of family members, spouses, dependents, or the hostages for medical
and health care which are incurred because of the ordeal; (3) protec-
tion of civilian Government employees from civil suit while they are
in a .missing status; (4) educational benefits for the spouse and de-
pendent children for the duration of the hostile action against the
United States, except in certain circumstances where the benefits
could be" extended; (5) educational benefits, under special circum-
stances, for the hostages themselves ; (6) educational benefits for the
spouse and dependent children of a hostage should the hostage die
while being held hostage; (7) exemption from taxes on compensation
received while a military or civilian Government employee is a hostage
or missing as a result of a hostile action abroad against the United
States ; (8) complete income tax exclusion for income received by an
employee who dies as a, result of a hostile action ; and (9) clarification
of authority to allow the spouse of a hostage to file a joint tax return
and to defer payment of certain taxes for up to 180 days after the re-
turn of a hostage or missing military or civilian employee.
BACKGROUND AND COMMITTEE COMMENT
H.R. 7085 was introduced on April 17, 1980, the 166th day of cap-
tivity of American citizens in Iran. At this writing, the hostages have
been held 321 days.
This legislation is intended as an expression of the . Nation's rec-
ognition of the difficulties faced by those held hostage as a result of
their Government service. While such legislation has been enacted in
the past for those in the: military service, the Congress has, not had
reason until today to expand such protection to civilians in Govern-
ment service. The benefits contained in H.R. 7085, as amended, are
based on those which were. given to POW's as a result of the Vietnam
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war. Some of those benefits are still in effect and thus give the military
who are being held hostage some relief, but the civilian Government
employees have no such relief for themselves or their families.
Despite intensive diplomatic efforts of our Government, U.S. Gov-
ernment personnel continue to'be held in Iran in gross violation of
international law. These hostages have been incarcerated cruelly and
unjustly since November 4, 1979. In addition to the prisoners' intoler-
able situation, the families of these individuals have also undergone
severe mental, and in some cases financial, strain due to this forced
separation.
The Congress must act now to alleviate, to the extent possible, the
burdens of the hostages and their families and to make certain that all
necessary assistance is provided upon their return home. It must
assure that any assistance these families require is readily available.
The executive branch has suggested that the benefits contained irx
the legislation be temporary to permit further study before permanent
legislation is proposed.
The committee feels that the problems dealt with in H.R. 7085 have
been sufficiently studied in the 10 months that our hostages have been
held in Iran. The legislation has been written to apply to hostage situa-
tions, generally, as well as to the Iran problem specifically. The au-
thorities 'are available to be used as needed, and can certainly be
amended at a later date if the need arises. The important point now
is to insure that protections are in place for individuals caught in any
future hostage situation.
The recent attacks on the U.S. Ambassador in Lebanon and on the
U.S. Embassy in El Salvador underline the increasingly hostile en=
vironment in which U.S. personnel serve and, therefore, the increased
likelihood of additional hostage situations. Experience with the prob-
lems confronting American POW's in the past, coupled with the
more recent hostage situations in Latin America and Iran, provide
sufficient background upon which to formulate permanent legislation.
Permanent legislation would avoid unnecessary delays in future situa-
tions and enable the provision of benefits as they are needed by the
hostage and hostage family rather than at a later. date.
The benefits provided by H.R. 7085, as amended, such as access to
the Soldiers' and Sailors' Civil Relief Act, which has been in effect
for the military for over 40 years, are not extraordinary. The legislation
has also been written to give the President sufficient discretion to ad-
just to the vagaries of any future case.
The committee feels that legislation is needed which will be effec-
tive not only after a hostage situation is over, but also during the pe-
riod of captivity, since the hostages' families are affected from the
beginning. The committee is therefore convinced that permanent--leg-
islation is the desirable course to follow.
SECTION-BY-SECTION ANALYSIS OF THE BILL AS AMENDED
SHORT TITLE
The short title of H.R. 7085'is the Hostage Relief Act of 1980.
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TITLE I-SPECIAL PROVISIONS FOR GOVERNMENT EMPLOYEES IN A MISSING
STATUS AS A RESULT OF HOSTILE ACTION ABROAD
Section 101-Special Provisions for Certain Missing Employees
Section 101 (a) adds a new section 5569 to subchapter VII (Payments
to Missing Persons) of chapter 55 of title 5 of the U.S. Code.
Section 5569(a)-Individuals for Whom Benefits are Available
New section 5569(a) (1) gives the President the authority to deter-
mine when a Government employee is in a misisng status for the pur-
poses of the section.
Section 5569 (a) (2) (A) defines "Government employee who is in a
missing status" for the purposes of this section. The term is broad
enough in scope to cover all military and civilian Government em-
ployees, as well as citizens or resident aliens of the United States whose
presence abroad is for the purpose of performing a Federal function.
Section 5569 (a) (2) (B) specifies coverage for the military only to
the extent that they are not already covered in existing legislation.
Section 5569(b) Special Savings Account
Section 5569(b) (1) directs the Secretary of the Treasury to estab-
lish a special interest-bearing. savings fund to which agency heads may
allot all or a portion of the pay of Government personnel being held
hostage. The money deposited would be that earned for pay periods
during which the employee is in a missing status and which is not
othewise subject to an allotment.
Section 5569 (b) (2) sets the interest rate at an amount equal to the
average paid on Treasury bills with 3-month maturities issued during
the preceding calendar quarter. Such interest would be compounded
quarterly.
Section 5569(b) (3) sets an effective date of November 4, 1979 for
the accrual of interest.
Section 5569(b) (4) provides that the amounts in the savings fund
shall have the status of pay and allowances for purposes of 5 U.S.C.
5563 or, in the case of a member of, the Armed Forces, for purposes of
37 U.S.C. 553. Both sections govern the authority to initiate, suspend,
increase, or otherwise handle allotments of pay and allowances for in-
dividuals in a missing status. This subsection also authorizes the Sec-
retary of the Treasury to establish procedures for withdrawal of
money from the special fund for us by the families in cases of'special
need.
Section 5569(c)-Medical and Health Care
Section 5569(c) directs the President to establish regulations by
which a head of any agency may pay (by advancement or reimburse-
ment) any expenses for medical and health care and other expenses
related to such care of family members, dependents, spouses, and Gov-
ernment employees being held hostage to the extent that those expenses
are not covered by insurance.
The committee believes that such coverage is necessary and desirable.
Some family members, dependents, spouses, or hostages may require
extended medical and psychological treatment which cannot be pro-
vided under existing Government programs. Since the Government
has placed certain defined responsibilities on its employees, it is only
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proper that the Government meet its responsibilities toward those em-
ployees if they incur medical or health problems while in the service of
their Government.
Section, 5569 (d) Education and Training Benefits
Section 5569(d) (1) requires the President to prescribe regulations
by which a head of an agency shall pay (by advancement or reimburse-
ment) expenses incurred by a spouse or dependent child of a Govern-
ment employee while attending an education or training institution.
Section 5569(d) (2) (A) provides for reimbursement for such edu-
cational courses or training undertaken between the 91st day the Gov-
ernment employee is in a missing status and the end of the semester
or quarter during which the missing status is terminated. It also pro-
vides that the President may, under special circumstances, extend the
benefits, but under no circumstances may they be provided for longer
than 45 months of education or the part-time equivalent thereof.
The committee's intent in allowing the President to extend the edu-
cational and training benefits for spouses and dependent children is to
enable them to continue a course of education should a hostage, when
released, be unable to pursue a -career for an extended period of time.
Section 5569(d) (2) (B) provides for educational benefits for the
spouse and dependent children, should a Government employee die
while in a missing status or as a result of the hostile action. The edu-
cational benefits would be provided to the extent authorized in regula-
tions prescribed by the President, but may not exceed 45 months or
the equivalent thereof in part-time training.
Section 5569(d) (3) provides for educational benefits, under special
circumstances, for a Government employee who has been in a missing
status. The benefits would commence after the missing status is termi-
nated and would be set by regulations issued by the President.
The committee does not intend that educational benefits for hos-
tages be automatic, but that such benefits should be extended to any
former hostage, who as a result of the hostage experience, is unable
or unwilling to continue in his or her current Government post. Such
educational benefits are designed to assist a former hostage in ob-
taining additional training which may be necessary in finding a new
position or career within or outside the Government. As provided un-
der section 5569(d) (3) the benefits would be available for a maximum
of 10 years from the date on which the Government employee's miss-
ing status is terminated, but in no instance would be for longer than
45 months or the part-time equivalent thereof.
Section 5569(d) (4) specifies that payment under this subsection
shall not exceed the maximum amount authorized to be paid under
38 U.S.C. 1732 concerning computation of educational assistance
allowance.
Section 5569(d) (5) provides that educational assistance shall be-
discontinued under this subsection if the individual's conduct or edu-
cational progress is unsatisfactory under standards comparable to
those established pursuant to 38 U.S.C. 1724 applying to educational
assistance for military personnel.
Section 5569(d) (6) directs the President to issue regulations to in-
sure that the benefits are comparable to the benefits made available
to veterans and their spouses and dependent children under title 38
(Veterans' Benefits) of the U.S. Code.
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The committee urges that any future changes in veterans' educa-
tional benefits also include consideration of the educational benefits
for the hostages so that, where desirable, the two remain compatible.
Section 5569 (e) -Relief from Civil Suit
Section 5569(e) (1) provides that Government employees who are
in a missing status will be entitled to the protections of certain pro-
visions of the Soldiers' and Sailors' Civil Relief Act of 1940. The
provisions of that act which would not apply are those that are ad-
ministered by the Veterans Administration, as well as related provi-
sions which concern military rights and privileges.
The Soldiers' and Sailors' Civil Relief Act provides protection from
civil suit in specified types of actions. Such protection includes author-
ity for a court to defer civil actions or proceedings affecting an individ-
ual's status or property rights until the individual is once more capable
of responding to the action.
For the purpose of section 5569, it is the committee's intent that
the phrase "head of an agency" refer to the employing agency of the
respective Government employee. For instance, the Department of
State would pay for those benefits provided its employees, the Depart-
ment of Commerce will be charged for its employees, etc. It is not
intended that the Veterans' Administration be charged for benefits
for employees outside the military.
The committee urges the executive branch to include the costs of
-these benefits in its budgetary calculations and insure that any fiscal
year 1981 supplemental request and the fiscal year 1982 budget con-
tain the appropriate amounts.
Sections 101 (b) and (c) of the bill make necessary technical and
conforming changes in title 5 of the U.S. Code.
Section 102 establishes an effective date of November 4, 1979, for
title I of H.R. 7085, as amended. Such an effective date will provide
access to the benefits of this bill not only to those Government and
military employees currently held in Iran, but also to the 14 who have
been released and the 6 who were returned under the protection of the
Canadian diplomats.
The bill would also apply to Ambassador Diego C. Ascencio, held
two months in Bogota. Colombia, and to two Peace Corps volunteers
who were held in captivity in Latin America during portions of the
same period in which U.S. personnel were held hostage in Iran.
The committee notes that on December 10, 1979, the House of Rep-
resentatives passed a concurrent resolution declaring the concern of
Congress for the present and future welfare of the hostages in Iran.
That resolution further stated the intent of Congress to assure the
financial and professional well-being of such hostages upon their
release.
Therefore, the committee wishes to state that, while this legislation
nrovides certain benefits to the hostages, it in no way precludes con-
;deration at a later date of other types of compensation or assistance.
The benefits in H.R. 7085 are those necessary immediately and once
the hostages are released, it is the committee's intent to scrutinize care-
fully other proposals to assist the hostages.
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Title II contains amendments to the Internal Revenue Code of 1954
---hich would provide certain tax benefits to hostages or persons miss-
ing as a result of hostile action against the United States. The com-
mittee did not consider this title of the legislation since it falls within
the jurisdiction of the Committee on Ways and Means. However, a
summary of the provisions is included here in order to provide a
complete analysis of the bill.
Section X01-Exemption from Income Taxes
Section 201 of H.R. 7085 would add a new subsection (e) to sec-
tion 112 of the Internal Revenue Code regarding certain combat pay
of members of the Armed Forces.
New subsection (e) (1) would exempt from gross income all com-
pensation received for active service as a Government employee dur-
ing any month the employee was in a missing status as a result of
a hostile action against the United States in a foreign area. It would
also exempt from gross income compensation received for any month
during any part of which such employee was hospitalized as a result
of such hostile action, but within 2 years of the date of termination of
the hostile action.
Subsection (e) (2) (A) defines "hostile action against the United
States" as an action abroad which is directed against the United
States that occurs on or after November 1, 1979, which the Secretary
of State identifies for this purpose in a letter published in the Federal
Register.
Subsection (e) (2(B) defines "Federal employee" to include any
person who is an employee, whether direct or indirect, of any agency
or instrumentality of the United States. The term would include any
person whose presence abroad is for the purpose of implementing a
federally funded program as determined by the Secretary of State.
Section 20d-Income Taxes on Government Employees on Death
Section 202 amends section 692 of the Internal Revenue Code of
1954 by adding a new subsection relating to foreign hostile actions.
New subsection 692 (c) (1) provides for exclusion from payment of
federal income tax if a Government employee should die as a result
of injuries sustained during a hostile action against the United States.
Under subsection 692 (c) (1) (A), this exclusion would be effective
only for income received during the year of death and during any prior
year the Government employee first entered into a missing status as
a result of such hostile action.
Subsection 692(c) (1) (B) stipulates that any unpaid tax (includ-
ing interest, additions to the tax, and additional amounts) will not
be assessed, that any assessment will be voided, and that any tax
collected will be credited or refunded as an overpayment.
The subsection also provides that the date of death of the employee
shall be determined under 5 U.S.C. 5565 (agency review), but that
the provisions shall not apply for any taxable year beginning more
than 2 years after the date of termination of the hostile action.
Subsection 692(c) (2) defines "active service", "employee", and
"hostile action against the United States" for the purposes of the,
section.
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Section 203-Joint Return Where Individual is in a Missing Status
Section 203 amends section 6013 (f) (1) of the Internal Revenue
Code of 1954 to permit an individual otherwise entitled to file a joint
return to file such a return if the individual's spouse is in a missing
status as a result of a hostile action against the United States.
Section 204-Federal Tax Deferment
Section 204 would amend section 7508(a) of the Internal Revenue
Code of 1954 to include within that section U.S. citizens or resident
aliens who are in a missing status because of a hostile action against
the United States or who are hospitalized .outside the United States
because of such hostile action. Specifically, section 7508 (a) relates to
exemptions from time deadline for filing tax returns in meeting other
time requirements relating to tax liability.
Section 9205-Applicability to all Teheran Hostages
Section 205 would make the bill's amendments to the Internal
Revenue Code of 1954 applicable to all citizens and resident aliens of
the United States held hostage in Iran, as determined by the Secre-
tary of State, at any time during November 1979, whether or not they
are Federal employees. The exemptions would apply only to those
who file an income tax return for the period in question.
Section 206 E f f eetive Date
Section 206 provides that the title II tax provisions shall apply
to taxable years ending on or after December 31, 1979.
Section 301-Visits by the International Red Cross
Section 301 (a) (1) states that the hostages are being held illegally
and unjustifiably by the Government of Iran, resulting in deteriora-
tion of the relations between the two countries.
Section 301 (a) (2) states that the length and conditions of the con-
finement of the hostages have reportedly endangered their physical
and mental well-being.
Section 301(b) states the sense of the Congress that the President
should make a formal request of the International Red Cross to make
regular and periodic visits to the hostages to determine whether they
are being treated in a humane and decent manner and are receiving
proper medical attention. It also states that the International Red
Cross should urge other countries to ask for the cooperation of the
Government of Iran to allow such visits and that the International
Red Cross should report to the United States its findings after each
such visit.
COST ESTIMATE
The committee estimates that the enactment of H.R. 7085, as
amended, will incur costs to the U.S. Government of less than $1
million and will decrease revenues by less than $1 million. The com-
mittee agrees with the cost estimate and projection of the Congres-
sional Budget Office below.
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1`3
INFLATIONARY IMPACT STATEMENT
Adoption of H.R. 7085,,as amended, would have no identifiable in-
flationary impact.
STATEMENTS REQUIRED BY CLAUSE 2 (1) (3) OF HOUSE R J E XI
(A) OVERSIGHT FINDINGS AND RECOMMENDATIONS
The principal oversight activities which contributed to the com-
mittee's action on H.R. 7085, as amended, are described earlier'in this
report under "Committee Action." Based on these activities ''and the
committee's continuing oversight of the matter concerning the pro-
tection of Americans abroad, the committee recommends the adoption
of H.R. 7085, as amended.
The adoption of H.R. 7085, as amended, will create new budget au-
thority to the extent estimated in the committee's cost estimate above
and the cost estimate of the Congressional Budget Office below.
No oversight findings which relate -to this measure have been re-
ceived from the Committee on Government Operations under; clause
4(c) (2) of Rule X of the House rules.
1. Bill number : H.R. 7085.
2. Bill title : Hostage Relief Act of 1980.
September 16, 1980.
3. Bill status : As ordered reported by the House Committee on
Foreign Affairs on September 10, 1980.
4. Bill purpose : H.R. 7085 authorizes pay, educational, medical, and
tax benefits for government employees in a missing status on or after
November 4, 1979, as a result of hostile action abroad.
Title I authorizes :
-the establishment of an interest-bearing savings fund to which the
pay and allowances of a government employee in a missing status
may be allotted during the period of captivity ;
-the payment of medical benefits to a government employee in a
missing status and to his or her family members, to the extent
that the medical care is incident to the missing status of the gov-
ernment employee and the care is not covered by insurance;
-the payment of educational benefits for the spouse or child of a
government employee in a missing status during the period the
employee is in a missing status (beginning after the ninetieth day
of captivity and not to exceed a total of 45 months) ;
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-the payment of educational benefits to the government employee
for educational courses or training that begin within 10 years
after the date on which the employee's missing status is terminated
and not to exceed 45 months; and
-the extension of certain provisions of the Soldiers' and Sailors'
Civil Relief Act to all government employees in a missing status.
Title II amends the Internal Revenue Code to provide income tax
relief to personnel in a missing status.
Title III recommends that the President request the International
Committee of the Red Cross to visit Iran periodically to check on the
welfare of the American hostages and to report fits findings to the
United States after each visit.
5. Cost estimate : In fiscal year 1981, Title I of H.1.7085 is estimated
to cost less than $1,000,000. Title II is estimated tp decrease revenues
by less than $1,000,000, and Title III is estimated to incur no direct
cost. These totals represent costs incurred during fiscal year 1980 that
would outlay in fiscal year 1981 plus the potential cost if the govern-
ment employees currently in a missing status were held for all of
fiscal year 1981.
6. Basis of estimate :
Title I
Savings Fund
The savings fund is not expected to result in additional costs. The
salaries deposited into the fund reduce by a corresponding amount
the money the U.S. Treasury must borrow daily and thus the interest
it must pay. This amount of interest is estimated to be approximately
equal to the interest that the U.S. Treasury will pay into the savings
fund, resulting in no net additional cost.
Medical Care
Function 050.-The medical care of military personnel is available
at no charge in military facilities. The medical care of dependents
of military personnel is available at military facilities or through the
CHAMPUS program. It is assumed that if dependents of military
personnel in a missing status require medical care, it will be obtained
in military facilities, resulting in virtually no additional cost. The De-
partment of Defense estimates the cost of medical care for non-depend-
ent family members of military personnel currently held in Iran to be
approximately $40,000.
Function 150.-The Department of State estimates eligible medical
costs for the Foreign Service employees currently in a missing status
and their family members to be approximately $350,000. This assumes
that approximately 45 of the eligible people will require extensive
psychiatric care for 100 weeks at $60 per week, and approximately
$100,000 will be required for general health care and medical travel.
. The two eligible Peace Corps employees and their family members
have incurred no eligible medical costs.
Educational Benefits
Function 050.-It is estimated that seven of the military personnel
currently in a missing status would use educational-benefits and that
each would have one dependent. Thus, each of the seven would receive
$370 per month for 45 months, for a total of approximately $117,000.
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No additional educational assistance costs are incurred for depend-
ents of military personnel because they are already eligible for the
benefits.
Function 150.-The Department of State estimates that 14 spouses
or children of Foreign Service employees will receive educational
benefits at a total cost of approximately $80,000. In addition, 10 of the
eligible Foreign Service employees will receive educational benefits at
a total cost of approximately $190,000.
The two Peace Corps employees have no dependents or spouses and
thus no additional cost will be incurred for dependents. The Peace
Corps, however, estimates that the employees themselves will receive
educational benefits at a total cost of approximately $28,000.
Other Provisions
Function 050.-The bill extends certain provisions of the Soldiers'
and Sailors' Civil Relief Act to government employees in a missing
status. This act exempts the personnel from certain civil liabilities
during their captivity. No additional costs are incurred for military
personnel since they are already covered by the act.
Function 150.-The extension of these provisions to the Foreign
Service and Peace Corps employees currently or previously in a
missing status will incur no additional cost.
Title II
The income tax relief provided to government employees in a missing
status is estimated to decrease revenues by less than $1,000,000.
Title III
Visits by the Red Cross to the American hostages in Iran should
incur no direct cost.
7. Estimate comparison : None.
8. Previous CBO estimate : CBO prepared a cost estimate for H.R.
7085 as reported by the House Post Office and Civil Service Committee
on August 27, 1980. This bill differs from the previous version in two
respects:
-it makes permanent the authority to pay benefits to government
employees in a missing status after November 4, 1979 (and thus
is not limited to the situation in Iran) ; and
-educational benefits are provided not only to the dependents of
personnel in a missing status but also to the personnel themselves.
9. Estimate prepared by : Linda Gard, Alice Hughey, and Willie
Bradford.
10. Estimate approved by :
C. G. NucKOLs
(For James L. Blum,
Assistant Director for Budget Analysis) .
CHANGES IN EXISTING LAW MADE BY THE BILL, As REPORTED
In compliance with clause 3 of Rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill, as re-
ported, are shown as follws (existing law proposed to be omitted is
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enclosed in black brackets, new matter is printed in italic, existing law
in which no change is proposed is shown in roman) :
TITLE 5~ UNITED STATES CODE
Subpart D-Pay and Allowances
*
5561. Definitions.
5562. Pay and allowances; continuance while in a missing status; limitations.
5563. Allotments ; continuance, suspension, initiation, resumption, or increase
while in a missing status ; limitations.
5564. Travel and transportation; dependents; household and personal effects;
motor vehicles ; sale of bulky items ; claims for proceeds ; appropriation
chargeable.
5565. Agency review.
5566. Agency determinations.
5567. Settlement of accounts.
5568. Income tax deferment.
5599. Special provision for Government employees in a missing status as a re-
sult of a hostile action abroad.
:SUBCHAPTER VII-PAYMENTS TO MISSING
EMPLOYEES
? 5561. Definitions
For the purpose of this subchapter-
(1) "agency" means an Executive agency and a military
department;
(2) "employee" means, except as provided in section 5569(a)
(2), an employee in or under an agency who is a citizen or na-
tional of the United States or an alien admitted to the United
State for permanent residence, but does not include a part-time or
intermittent employee or native labor casually hired on an hourly
or daily basis. However, such an employee who enters a status
listed in paragraph (5) (A)-(E) of this section-
(A) inside the continental United States; or
(B) who is a resident at or in the vicinity of his place of
employment in a territory or possession of the United States
or in a foreign country and who was not living there solely
as a result of his employment;
is an employee for the purpose of this subchapter only on a de-
termination by the head of the agency concerned that this status
is the proximate result of employment by the agency;
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(3) "dependent" means-
(A) a wife;
(B) an unmarried child (including an unmarried depend-
ent stepchild or adopted child) under 21 years of age;
(C) a dependent mother or father;
(D) a dependent designated in official records; and
(E) an individual determined to be dependent by the head
of the agency concerned or his designee;
(4) "active service" means active Federal service by an
employee;
(5) "missing status" means the status of an employee who is
in active service and is officially carried or determined to be absent
in a status of-
(A) missing;
(B) missing in action ;
(C) interned in a foreign country ;
(D) captured, beleaguered, or besieged by a hostile force;
or
(E) detained in a foreign country against his will;
but does not include the status of an employee for a period during
which he is officially determined to be absent from his post of
duty without authority ; and
(6) "pa and allowances" means-
(A) basic pay;
(B) special pay;
(C) incentive pay ;
(D) basic allowance for quarters;
E) basic allowance for subsistence; and
F) station per diem allowances for not more than 90 days.
? 5569. Special provisions for Government employees in a missing
status as a result of a hostile action abroad
(a) (1) This section applies. with respect to any individual who the
President determines is a Government employee who is in a missing
status on or after November 4,1979, for purposes of this section.
(2) (A) Notwithstanding section 2105 or section 5561 (2) or (5) of
this title, for purposes of this section, the term "cover 'in nt employee
who is in a missing status" means (as determined by the President)-
(i) an individual who is in the civil service or the uniformed
services (subject to subparagraph (B) of this paragraph) and who
is in a missing status as a result of a hostile action abroad against
the United States; and
(ii) a citizen or resident alien of the United States whose pres-
ence abroad is for the purpose of performing a Federal function
and who, if the individual were an employee, would be in a missing
status (as described in subparagraphs (A) through (E) of para-
graph (5) of section 5561) as a result of a hostile action abroad
against the United States.
(B) Subsections (d) and (e) of this section do not apply with re-
spect to members of the armed forces to the extent that those subsec-
tions provide benefits which are identical to benefits which are pro-
vided with respect to members of the armed forces under any other
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provision of law. To the extent that the benefits provided by subsections
(d) and (e) of this section are not identical to benefits which are pro-
vided with respect to members of the armed forces under another pro-
vision o f law, the additional benefits provided by those subsections
shall be available, in accordance with regulations prescribed by the
President, with respect to members of the armed forces to whom this
section applies.
(b) (1) The Secretary of the Treasury shall establish a savings fund
to which the head of an agency may allot all or any portion of the pay
and allowances of any Government employee to whom this section
applies-
(A) which are for pay periods during which the employee is in
a missing status (within the meaning of this section) ; and
(B) which are not subject to an allotment under section 5563 of
this title, section 553 of title 37, or any other provision of law.
(2) Amounts so alloted to the savings fund shall bear interest at a
rate which, for any calendar quarter, shall be equal to the average rate
paid on United States Treasury bills with three-month maturities
issued during the preceding calendar quarter. Such interest shall be
compounded quarterly.
(3) Amounts may be alloted to the savings fund from pay and al-
lowances for any pay period ending after November 4,1979, and before
the establishment of the savings fund. Interest on amounts alloted
from the pay and allowances for any such pay period shall be cal-
culated as if the allotment had occurred at the end of the pay period.
(4) Amounts in the savings fund credited to a Government employee
shall be considered as pay and allowances for purposes of section 5563
,of this title (or in the case of a member of a uniformed service, for
purposes of section 553 of title 37) and shall otherwise be subject to
withdrawal under procedures which the Secretary of the Treasury
shall establish.
(c) Under regulations prescribed by the President, the head of an
agency may pay (by advancement or reimbursement) any Government
employee to whom this section applies, or any family member (as such
,term may be defined in those regulations) or dependent of such a
Government employee, for expenses for medical and health care, and
for other expenses related to such care, which were incurred on or after
November 4, 1979, incident to the fact that the Government employee
was in a missing status (within the meaning of this section), but only
to the extent that those expenses are not covered by insurance.
(d) (1) Under regulations prescribed by the President, the head of
an agency shall pay (by advancement or reimbursement) a spouse
or dependent child of a Government employee to whom this section
applies for expenses incurred for subsistence, tuition, fees, supplies,
books, equipment, and other educational costs while attending an edu-
cational or training institution.
(2) (A) Except as provided in subparagraph (B), payment under
paragraph (1) may be made for attendance at educational courses or
training between the ninety-first day the Government employee is in a
missing status (within the meaning of this section) and the end of the
semester or quarter (as appropriate) during which the missing status
of the Government employee is terminated (or such later date as the
President may, under special circumstances, specify), but not to exceed
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a total of forty-five months (or the equivalent thereof in part-time
training).
(B) If the Government employee dies while in a missing status
(within the meaning of this section), or dies as a result of the hostile
action abroad against the United States, expenses for education and
training under paragraph (1) may be paid, to the extent authorized
in the regulations prescribed by the President, for up to a total of
forty-five months (or the equivalent thereof in part-time training).
(3) Under regulations prescribed by the President, the head of an
agency may, under such special circumstances as may be set forth in
those regulations, pay (by advancement or reimbursement) a Govern-
ment employee to whom this section applies for expenses incurred,
after the termination o f the employee's missing status, for subsist-
ence, tuition, fees, supplies, books, equipment, and other educational
costs while attending an educational or training institution. Payment
under this paragraph may be made for educational courses or training
during any semester or quarter (as appropriate) which begins less than
10 years after the date on which the employee's missing status is termi-
nated (whether or not the individual is still a Government employee),
except that payment may not be made under this paragraph for attend-
ance at educational courses or training in excess of a total of forty-five
months (or the equivalent thereof in part-time training).
(4) payment under this subsection shall not exceed the maximum
amount authorized to be paid under section 1732 of title 38.
(5) Educational assistance shall be discontinued under this subsec-
tion to any individual if that individual's conduct or educational prog-
ress is unsatisfactory under standards comparable to those established
pursuant to section 1724 o f title 38.
(6) Regulations prescribed by the President under this subsection
shall provide that the educational assistance program under this sub-
section shall be comparable to the educational assistance program un-
der chapters 35 and 36 of title 38.
(e) (1) Under regulations prescribed by the President, a Govern-
ment employee to whom this section applies is entitled to the benefits
provided by the Soldiers' and Sailors' Civil Relief Act of 1940 (50
U.S.C. App. 501 et seq.), including the benefits provided by section 701
(50 U.S.C. App. 591) but excluding the benefits provided by sections
104, 105, 106, 400 through 408, 501 through 512, and 514 (50 U.S.C.
App. 514, 515, 516, 540, through 548, 561 through 572, and 574).
(2) In applying such Act for purposes of carrying out this
subsection-
(A) the term "person in the military service" is deemed to in-
clude a Government employee to whom this section applies;
(B) the term "period of military service" is deemed to include
the period during which that Government employee is in a missing
status (within the meaning of this section) ; and
(C) references to the Secretary of the Army and the Secretary
of the Navy or to the Adjutant General of the Army, the Chief of
Naval Personnel, and the Commandant, United States Marine,
Corps, are deemed to be references to the President.
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20
INTERNAL REVENUE CODE OF 1454
Subtitle A-Income Taxes
* * * * * * *
CHAPTER 1-NORMAL TAXES AND SURTAXES
* * * * * *
Subchapter B-Computation of Taxable Income
* * * * * * *
PART III-ITEMS SPECIFICALLY EXCLUDED FROM
GROSS INCOME
SEC. 112. CERTAIN COMBAT PAY OF MEMBERS OF THE ARMED FORCES.
(a) ENLISTED PERSONNEL.- *
* * *
(e) FOREIGN HOSTILE ACTIONS.-
(1) FEDERAL EMPLOYEES.-Gross income does not include com-
pensation received for active service as an employee for any month
during any part of which such employee-
(A) was in a missing status as the result of any hostile
action against the United States, or
(B) was hospitalized as a result of wounds, injury, disease,
or partial or total physical or mental disablement incurred
during a hostile action against the United States; but this
subparagraph shall not apply for any month beginning more
than 2 years after the date of the termination of the hostile
action.
(2) DEFINITIONS. For purposes of paragraph (1)-
(A) HOSTILE ACTION.-The term "hostile action against the
United States" means an action abroad which is directed
against the United States and occurs on or after November 1,
1979, which the Secretary of'State identifies in a letter to the
Secretary and which letter is published in the Federal Regis-
ter.
(B) FEDERAL EMPLOYEE.-The terms "active, service" and
"missing status" have the respective meanings given to such
terms by section 5561 of title 5 of the United States Code, and
the term "employee" means an individual (other than a mem-
ber of the Armed Forces of the United .States) who is a
Government employee within the meaning of section 5569(a)
(2) of title 5, United States Code.
* * * * * *
Subchapter J-Estates, Trusts, Beneficiaries, and Decedents
* * * * * _ * *
PART II-INCOME IN RESPECT OF DECEDENTS
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(a) GENERAL RIILE.- * * *
(c) FOREIGN HOSTILE ACTIONS.-
(1) GENERAL RULE.-4In the case of any individual who .dies on
or after November 1, 1979,' while in active service as an employee,
if such death occurred as a result of wounds, injury, disease, or
partial or total physical or mental disablement incurred during a
hostile action against the United States-
(A) any tax imposed by this subtitle shall not apply with
respect to the taxable year in which falls the date of such
individual's death, or with respect to any prior taxable year
ending on or after the first day such individual was in a miss-
ing status within the meaning of section 112(e); .and
(B) any tax under this subtitle which is upaidat=the date
of such individual's death (including interest, additions to the
tax, and additional amounts) shall not be assessed, and if
assessed the assessment shall be abated, and if collected shall
be credited or refunded as an overpayment.
For purposes of this paragraph:, the date of death shall-be treated
as being not earlier than the date on which a determination of such
individual's death is made under section 5.565 of title 5 of the
United States Code. This paragraph shall not apply for=any tax-
able year beginning more than 2 years after the date of termina-
tion of the hostile action as determined for purposes of section
112(e).
(2) DEFINITIONS. For purposes . of paragraph (1), the term
"active service" has the meaning given to Ai eh- term 4 section
5561 of title 5 of the United States Code, the term " loyee"
means an individual (other than a member of the ArForces
of the United States) who is a Government employee with-
in the meaning of section 5569(a) (2) of title 5 of the United
States Code, and the term "hostile action against the United
States" has the meaning given to such term by section 11e(e)
(2) (A).
* * * *
Subtitle F-Procedure and Administration
* * * * * * *
CHAPTER 61-INFORMATION AND RETURNS
* * * * * * *
Subchapter A-Returns and Records
* * * * * * *
PART II-TAX RETURNS OR STATEMENTS
* * * * * * *
Subpart B-Income Tax Returns
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SEC. 6013. JOINT RETURNS OF INCOME TAX ' BY HUSBAND AND WIFE.
(a) JOINT RETURNS.-*
(f) JOINT RETURN WHERE INDIVIDUAL IS IN MISSING STATUS.-For
purposes of this section and subtitle A-
(1) ELECTION BY SPOUSE,-If-
(A) an individual is in a missing status (within the mean-
ing of paragraph (3)) as a result of service in a combat zone
(as determined for purposes of section 112) or as the result of
a hostile a?tion against the United States (as determined for
purposes of section 112(e), and
(B) the spouse of such individual is otherwise entitled to
file a joint return for any taxable year which begins on or
before the day which is 2 years after the date designated
under section 112 as the date of termination of combatant
activities in such zone, or which begins on or before the day
which is 2 years after the date as determined for purposes of
section 112(e) as the date of termination of the missing status
of such individual,
then such spouse may elect under subsection (a) to file a joint
return for such taxable year. With respect to service in the combat
zone designated for purposes of the Vietnam conflict, no such
election may be made for any taxable year beginning after Janu-
ary 2,1978.
(2) EFFECT OF ELECTION.-If the spouse of an individual de-
scribed in paragraph (1) (A) elects to file a joint return under
subsection (a) for a taxable year, then until such election is
revoked-
(A) such election shall be valid even if such individual
died before the beginning of such year, and
(B) except for purposes of section 692 (relating to income
taxes of members of the Armed Forces on death), the income
tax liability of such individual, his spouse, and his estate shall
be determined as if he were alive throughout the taxable year.
(3) MISSING STATUS.-For purposes of this subsection-
(A) UNIFORMED SERVICES.-A member of a uniformed serv-
ice (within the meaning of section 101(3) of title 37 of the
United States Code) is in a missing status for any period for
which he is entitled to pay and allowances under section 552
of such title 37.
(B) CIVILIAN EMPLOYEES.-An emplee (within the mean-
ing of section 5561(2) of title 5 of the' United States Code)
is in a missing status for any period for which he is entitled
to pay and allowances under section 5562 of such title 5.
(C) CITIZENS AND RESIDENT ALIENS.-A citizen or resident
alien of the United States (other than an individual referred
to in subparagraph (A) or (B)) is in a missing status for
any period during which such individual satisfies the require-
ment of subparagraph (A), (B), (C), (D), or (F) of para-
graph (5) of section 5561 of title 5 of the United States Code
as determined by the Secretary of State..
(4) MAKING OF ELECTION; REVOCATION.-An election described
in this subsection with respect to any taxable year may be made by
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filing a joint return in accordance with subsection (a) and under
such regulations as may be prescribed by the Secretary. Such an
election may be revoked by either spouse on or before the due date
(including extensions) for such taxable year, and, in the case of
an executor or administrator, may be revoked by disaffirming as
provided in the last sentence of subsection (a) (3).
CHAPTER 77-MISCELLANEOUS PROVISIONS
* * * * * * *
SEC. 7508. TIME FOR PERFORMING CERTAIN ACTS POSTPONED BY
REASON OF SERVICE IN COMBAT ZONE.
[ (a) TIME To BE DIsRFGARDED.-In the case of an individual serving
in the Armed Forces of the United States, or serving in support of such
Armed Forces, in an area designated by the President of the United
States by Executive order as a "combat zone" for purposes of section
112, at any time during the period designated by the President by
Executive order as the period of combatant activities in such zone for
purposes of such section, or hospitalized outside the United States as a
result of injury received while serving in such an area during such time,
the period of service in such area, plus the period of continuous hos-
pitalization outside the United States attributable to such injury, and
the next 180 days thereafter, shall be disregarded in determining, under
the internal revenue laws, in respect of any tax liability (including any
interest, penalty, additional amount, or addition to the tax) of such
individual-
[ (1) Whether any of the following acts was performed within
the time prescribed therefor :
[(A) Filing any return of income, estate,. or gift tax (ex-
cept income tax withheld at source and income tax imposed by
subtitle C or any law superseded thereby) ;
[(B) Payment of any income, estate, or gift tax (except
income tax withheld at source and income tax imposed by sub-
title C or any law superseded thereby) or any installment
thereof or of any other liability to the United States in re-
spect thereof;
[(C) Filing a petition with the Tax Court for redetermina-
tion of a deficiency, or for review of a decision rendered by the
Tax Court;
[(D) Allowance of a credit or refund of any tax;
[(E) Filing a claim for credit or refund of any tax;
[(F) Bringing suit upon any such claim for credit or
refund;
[(G) Assessment of any tax;
[(H) Giving or making any notice or demand for the pay-
ment of any tax, or with respect to any liability to the United
States in respect of any tax ;
[(I) Collection, by the Secretary, by levy or otherwise, of
the amount of any liability in respect of any tax;
[(J) Bringing suit by the United States, or any officer on
its behalf, in respect of any liability in respect of any tax;
and
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[(K) Any other act required or permitted under the inter-
nal revenue laws specified in regulations prescribed under
this section by the Secretary;
((2) The amount of any credit or refund (including interest).]
(a) TIME To BE DISREGARDED. In the case of-
(1) an individual serving in the Armed Forces of the United
States, or serving in support of such Armed Forces, in an area
designated by the President of the United States by Executive
order as a `combat zone' for purposes of section 112, at any time
during the period designated by the President by Executive order
as the period of combatant activities in such zone for purposes of
such section, or hospitalized outside the United States as a result
of injury received while serving in such an area during such time,
the period of service in such area, plus the period of continuous
hospitalization outside the United States attributable to such
injury; or
(2) a citizen or resident alien of the United States who is in a
missing status within the meaning of section 112(e) or hospi-
talized outside the United States as the result of wounds, injury,
disease, or partial. or total physical or mental disablement in-
curred during a hostile action against the United States within
the meaning of section 112(e), the period of such missing status
plus the period of continuous hospitalization outside the United
States attributable to such wounds, injury, disease, or disable-
ment; and
(8) more than 2 years after the date as determined for purposes
of section 112(e) as the date of termination of the missing status
of the individual.
the next 180 days thereafter shall be disregarded in determining, under
the internal revenue laws, in respect of any tax liability (including
any interest, penalty, additional amount, or addition to the tax) of such
individual-
(A) Whether any of the following acts was performed within
the time prescribed therefor:
(i) Filing any return of income, estate, or gift tax (except
income tax withheld at source and income tax imposed by
subtitle C or any law superseded thereby) ;
(ii) Payment of any income, estate, or gift tax (except in-
come tax withheld at source and income tax imposed by sub-
title C or any law superseded thereby) or any installment
thereof or of any other liability to the United States in respect
thereof;
(iii) Filing a petition with the Tax Court for redetermina-
tion of a deficiency, or for review of a decision rendered by
the Tax Court;
(iv) Allowance of a credit or refund of any tax;
(v) Filing a claim for credit or refund of any tax;
(vi) Bringing suit upon any such claim for credit or
refund;
(vii) Assessment of any tax;
(viii) Giving or making any notice or demand for the pay-
ment of any tax, or with respect to any liability to the United
States in respect of any tax;
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(ix) Collection, by the Secretary, by levy or otherwise, of
the amount of any liability in respect of any tax;
(x) Bringing suit by the United States, or any officer on
its behalf, in respect of any liability in respect of any tax; and
(xi) Any other act required or permitted under the internal
revenue laws specified in regulations prescribed under this
section by the Secretary;
(B) The amount of any credit or refund (including interest).
In the case of a citizen or resident alien of the United States who is not
a Government employee within the meaning of section 5569 (a) (2) of
title 5 of the United States Code, such individual is in a missing status
for purposes of this subsection for an period during which such indi-
vidual satisfies the requirement of subparagraph (A), (B), (C), (D),
or (E) of paragraph. (5) of section 5561 of title 5 of the United States
Code as determined by the Secretary of State.
(b) APPLICATION TO SPousE.-The provisions of this section shall
apply to the spouse of any individual entitled to the benefits of sub-
section (a). The preceding sentence shall not cause this section to
apply to any spouse for any taxable year beginning-
(1) after January 2, 1978, in the case of service in the combat
zone designated for purposes of the Vietnam conflict, [or]
(2) more than 2 years after the date designated under section
112 as the date of termination of combatant activities in that zone,
in the case of any combat zone other than that referred to in para-
graph (1) 0, or
(C) MISSING} STATUS.-The period of service in the area referred to
in subsection (a) (1) shall include the period during which an indi-
vidual entitled to benefits under subsection (a) (1) is in a missing
status, within the meaning of section 6013 (f) (3).
O
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