Senate Approves Tax Relief Bill
The following article is provided courtesy of CCH, Inc.
The Senate on November 16 approved, by voice vote, legislation that would provide tax relief to survivors and victims of the September 11 terrorist attacks. The measure, Victims of Terrorism Relief Bill of 2001 (HR 2884), would grant victims' families an exemption from estate and income taxes.
Senate Finance Committee ranking member Charles E. Grassley, R-IA, said in a joint statement that "It's entirely appropriate to give tax relief to survivors."
The bill would waive income and payroll taxes for two years. In addition, it would exempt death and disability benefits, workers' compensation benefits, and government retirement plan benefits for persons injured in the attacks.
In addition, disaster payments and airline payments to victims would not be subject to taxation. The legislation would also make it easier for charitable organizations to make disaster relief payments to victims' families. The bill would allow the Treasury Department to extend tax filing deadlines for up to one year for victims and their families.
The House passed its version on September 13.