President Bush Signs Victims of Terrorism Bill

On Thursday, President Bush signed the Victims of Terrorism Tax Relief Act of 2001 (H.R.2884), which provides tax relief to families of people killed in the terrorist attacks of September 11, the anthrax mailings that occurred after September 11, and the Oklahoma City bombing.

The bill provides relief on several levels:

  • Income and payroll tax for victims is waived for the year of death and the preceding year. If the total waived income tax is not at least $10,000, a minimum benefit of $10,000 for the two years will apply. The bill does not address how tax will be computed, for purposes of this waiver, in the case of income jointly earned by a victim and a surviving spouse.
  • Income tax will not be assessed on money paid by charitable organizations to families of terrorist victims.
  • Families of terrorist victims and members of the military who died in combat zones will be entitled to use a schedule of estate taxes that is lower than the estate tax schedule currently in place.

"The legislation passed by Congress will relieve the tax burden on families who have lost loved ones," said President Bush. "The Victims of Terrorist Tax Relief Act is an important example of our national unity and resolve, and it's my honor to sign it today."

You can read the text of the bill by entering H.R.2884 in the "Bill Number" area at the Library of Congress's Thomas Web site.

You may like these other stories...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
The Republican-controlled House of Representatives passed a bill on Friday morning that would permanently extend the bonus depreciation tax break for businesses.The measure, HR 4718, which was crafted by Representative Pat...
The Republican-led House of Representatives is expected to pass a bill this week that would permanently extend the bonus depreciation tax break. But don’t expect President Obama to sign it.The Obama administration said...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.