§ 7508. — Time for performing certain acts postponed by reason of service in combat zone.
[Laws in effect as of January 7, 2003]
[Document affected by Public Law 1 Section -(b)(2)]
[Document affected by Public Law 1]
[CITE: 26USC7508]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 77--MISCELLANEOUS PROVISIONS
Sec. 7508. Time for performing certain acts postponed by reason
of service in combat zone or contingency operation
(a) Time to be disregarded
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, or when deployed outside
the United States away from the individual's permanent duty station
while participating in an operation designated by the Secretary of
Defense as a contingency operation (as defined in section 101(a)(13) of
title 10, United States Code) or which became such a contingency
operation by operation of law, 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 at any time
during the period of such contingency operation, or hospitalized as a
result of injury received while serving in such an area or operation
during such time, the period of service in such area or operation, plus
the period of continuous qualified hospitalization 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 (except
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C or any law superseded thereby);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 subtitle
C or any law superseded thereby) or any installment thereof or
of any other liability to the United States in respect thereof;
(C) Filing a petition with the Tax Court for redetermination
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 payment 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
(K) Any other act required or permitted under the internal
revenue laws specified by the Secretary;
(2) The amount of any credit or refund.
(b) Special rule for overpayments
(1) In general
Subsection (a) shall not apply for purposes of determining the
amount of interest on any overpayment of tax.
(2) Special rules
If an individual is entitled to the benefits of subsection (a)
with respect to any return and such return is timely filed
(determined after the application of such subsection), subsections
(b)(3) and (e) of section 6611 shall not apply.
(c) Application to spouse
The provisions of this section shall apply to the spouse of any
individual entitled to the benefits of subsection (a). Except in the
case of the combat zone designated for purposes of the Vietnam conflict,
the preceding sentence shall not cause this section to apply for any
spouse for any taxable year beginning more than 2 years after the date
designated under section 112 as the date of termination of combatant
activities in a combat zone.
(d) Missing status
The period of service in the area or contingency operation referred
to in subsection (a) shall include the period during which an individual
entitled to benefits under subsection (a) is in a missing status, within
the meaning of section 6013(f)(3).
(e) Exceptions
(1) Tax in jeopardy; cases under title 11 of the United
States Code and receiverships; and transferred
assets
Notwithstanding the provisions of subsection (a), any action or
proceeding authorized by section 6851 (regardless of the taxable
year for which the tax arose), chapter 70, or 71, as well as any
other action or proceeding authorized by law in connection
therewith, may be taken, begun, or prosecuted. In any other case in
which the Secretary determines that collection of the amount of any
assessment would be jeopardized by delay, the provisions of
subsection (a) shall not operate to stay collection of such amount
by levy or otherwise as authorized by law. There shall be excluded
from any amount assessed or collected pursuant to this paragraph the
amount of interest, penalty, additional amount, and addition to the
tax, if any, in respect of the period disregarded under subsection
(a). In any case to which this paragraph relates, if the Secretary
is required to give any notice to or make any demand upon any
person, such requirement shall be deemed to be satisfied if the
notice or demand is prepared and signed, in any case in which the
address of such person last known to the Secretary is in an area for
which United States post offices under instructions of the
Postmaster General are not, by reason of the combatant activities,
accepting mail for delivery at the time the notice or demand is
signed. In such case the notice or demand shall be deemed to have
been given or made upon the date it is signed.
(2) Action taken before ascertainment of right to benefits
The assessment or collection of any internal revenue tax or of
any liability to the United States in respect of any internal
revenue tax, or any action or proceeding by or on behalf of the
United States in connection therewith, may be made, taken, begun, or
prosecuted in accordance with law, without regard to the provisions
of subsection (a), unless prior to such assessment collection,
action, or proceeding it is ascertained that the person concerned is
entitled to the benefits of subsection (a).
(f) Treatment of individuals performing Desert Shield services
(1) In general
Any individual who performed Desert Shield services (and the
spouse of such individual) shall be entitled to the benefits of this
section in the same manner as if such services were services
referred to in subsection (a).
(2) Desert Shield services
For purposes of this subsection, the term ``Desert Shield
services'' means any services in the Armed Forces of the United
States or in support of such Armed Forces if--
(A) such services are performed in the area designated by
the President pursuant to this subparagraph as the ``Persian
Gulf Desert Shield area'', and
(B) such services are performed during the period beginning
on August 2, 1990, and ending on the date on which any portion
of the area referred to in subparagraph (A) is designated by the
President as a combat zone pursuant to section 112.
(g) Qualified hospitalization
For purposes of subsection (a), the term ``qualified
hospitalization'' means--
(1) any hospitalization outside the United States, and
(2) any hospitalization inside the United States, except that
not more than 5 years of hospitalization may be taken into account
under this paragraph.
Paragraph (2) shall not apply for purposes of applying this section with
respect to the spouse of an individual entitled to the benefits of
subsection (a).
(Aug. 16, 1954, ch. 736, 68A Stat. 898; Pub. L. 93-597, Sec. 5(a), Jan.
2, 1975, 88 Stat. 1952; Pub. L. 94-455, title XIX, Sec. 1906(a)(51),
(b)(13)(A), Oct. 4, 1976, 90 Stat. 1831, 1834; Pub. L. 94-569,
Sec. 3(e), Oct. 20, 1976, 90 Stat. 2700; Pub. L. 96-589, Sec. 6(i)(14),
Dec. 24, 1980, 94 Stat. 3411; Pub. L. 97-448, title III, Sec. 307(d),
Jan. 12, 1983, 96 Stat. 2407; Pub. L. 99-514, title XVII,
Sec. 1708(a)(4), Oct. 22, 1986, 100 Stat. 2782; Pub. L. 102-2,
Sec. 1(a)-(c), Jan. 30, 1991, 105 Stat. 5; Pub. L. 107-134, title I,
Sec. 112(b), Jan. 23, 2002, 115 Stat. 2434; Pub. L. 108-121, title I,
Sec. 104(a)-(b)(2), Nov. 11, 2003, 117 Stat. 1338.)
Amendments
2003--Pub. L. 108-121, Sec. 104(b)(2), inserted ``or contingency
operation'' after ``combat zone'' in section catchline.
Subsec. (a). Pub. L. 108-121, Sec. 104(a), in introductory
provisions, inserted ``, or when deployed outside the United States away
from the individual's permanent duty station while participating in an
operation designated by the Secretary of Defense as a contingency
operation (as defined in section 101(a)(13) of title 10, United States
Code) or which became such a contingency operation by operation of law''
after ``section 112'', ``or at any time during the period of such
contingency operation'' after ``for purposes of such section'', ``or
operation'' after ``such an area'', and ``or operation'' after ``such
area''.
Subsec. (d). Pub. L. 108-121, Sec. 104(b)(1), inserted ``or
contingency operation'' after ``area''.
2002--Subsec. (a)(1)(K). Pub. L. 107-134 struck out ``in regulations
prescribed under this section'' before ``by the Secretary''.
1991--Subsec. (a). Pub. L. 102-2, Sec. 1(c)(1), in introductory
provisions, struck out ``outside the United States'' before ``as a
result of injury'' and substituted ``the period of continuous qualified
hospitalization'' for ``the period of continuous hospitalization outside
the United States''.
Subsec. (a)(2). Pub. L. 102-2, Sec. 1(b)(2), struck out ``(including
interest)'' after ``refund''.
Subsecs. (b) to (e). Pub. L. 102-2, Sec. 1(b)(1), added subsec. (b)
and redesignated former subsecs. (b) to (d) as (c) to (e), respectively.
Subsecs. (f), (g). Pub. L. 102-2, Sec. 1(a), (c)(2), added subsecs.
(f) and (g).
1986--Subsec. (b). Pub. L. 99-514 amended last sentence generally.
Prior to amendment, last sentence read as follows: ``The preceding
sentence shall not cause this section to apply to any spouse for any
taxable year beginning--
``(1) after December 31, 1982, 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
paragraph (1).''
1983--Subsec. (b)(1). Pub. L. 97-448 substituted ``December 31,
1982'' for ``January 2, 1978''.
1980--Subsec. (d). Pub. L. 96-589 substituted ``cases under title 11
of the United States Code and receiverships'' for ``bankruptcy and
receiverships'' in par. (1) heading.
1976--Pub. L. 94-455, Sec. 1906(a)(51)(A), substituted ``by reason
of service in combat zone'' for ``by reason of war'' in section
catchline.
Subsec. (a). Pub. L. 94-455, Sec. 1906(a)(51)(B), (b)(13)(A),
substituted ``United States'' for ``States of the Union and the District
of Columbia'' in two places after ``hospitalized outside the'' and
``hospitalization outside the'', and struck out ``or his delegate''
after ``Secretary''.
Subsec. (b). Pub. L. 94-569 substituted ``taxable year beginning''
for ``taxable year beginning more than 2 years after'' in provisions
preceding par. (1), substituted ``after January 2, 1978'' for ``the date
of the enactment of this subsection'' in par. (1), and substituted
``more than 2 years after the date designated'' for ``the date
designated'' in par. (2).
Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or
his delegate'' after ``Secretary'' wherever appearing.
1975--Subsecs. (b) to (d). Pub. L. 93-597 added subsecs. (b) and (c)
and redesignated former subsec. (b) as (d).
Effective Date of 2003 Amendment
Pub. L. 108-121, title I, Sec. 104(c), Nov. 11, 2003, 117 Stat.
1338, provided that: ``The amendments made by this section [amending
this section] shall apply to any period for performing an act which has
not expired before the date of the enactment of this Act [Nov. 11,
2003].''
Effective Date of 2002 Amendment
Amendment by Pub. L. 107-134 applicable to disasters and terroristic
or military actions occurring on or after Sept. 11, 2001, with respect
to any action of the Secretary of the Treasury, the Secretary of Labor,
or the Pension Benefit Guaranty Corporation occurring on or after Jan.
23, 2002, see section 112(f) of Pub. L. 107-134, set out as a note under
section 6081 of this title.
Effective Date of 1991 Amendment
Section 1(d) of Pub. L. 102-2 provided that: ``The amendments made
by this section [amending this section] shall take effect on August 2,
1990.''
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1982, see section 1708(b) of Pub. L. 99-514, set out as a
note under section 2 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under Title 11, Bankruptcy, commenced before
Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as a note
under section 108 of this title.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94-455 effective on first day of first month
which begins more than 90 days after Oct. 4, 1976, see section
1906(d)(1) of Pub. L. 94-455, set out as a note under section 6013 of
this title.
Effective Date of 1975 Amendment
Section 5(b) of Pub. L. 93-597 provided that: ``The amendments made
by subsection (a) [amending this section] shall apply to taxable years
ending on or after February 28, 1961.''
Transfer of Functions
Office of Postmaster General of Post Office Department abolished and
all functions, powers, and duties of Postmaster General transferred to
United States Postal Service by Pub. L. 91-375, Sec. 4(a), Aug. 12,
1970, 84 Stat. 773, set out as a note under section 201 of Title 39,
Postal Service.
Ex. Ord. No. 12750. Designation of Arabian Peninsula Areas, Airspace,
and Adjacent Waters as Persian Gulf Desert Shield Area
Ex. Ord. No. 12750, Feb. 14, 1991, 56 F.R. 6785, provided:
By the authority vested in me as President by the Constitution and
the laws of the United States of America, including section 7508 of the
Internal Revenue Code of 1986 (26 U.S.C. 7508), I hereby designate, for
purposes of that section, the following locations, including the air
space above such locations, as the Persian Gulf Desert Shield area in
which any individual who performed Desert Shield services (including the
spouse of such individual) is entitled to the benefits of section 7508
of the Internal Revenue Code of 1986:
--the Persian Gulf
--the Red Sea
--the Gulf of Oman
--that portion of the Arabian Sea that lies north of 10 degrees
north latitude and west of 68 degrees east longitude
--the Gulf of Aden
--the total land area of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain,
Qatar, and the United Arab Emirates.
George Bush.
Section Referred to in Other Sections
This section is referred to in sections 6161, 6504, 6533, 6901,
7508A of this title.
