Tax Relief - Victims of Terrorism Act

A bill benefiting survivors of terrorism victims wasincluding his monetized sick and vacation leaves.
passed and signed into law in 2001. Its main provisions- Death benefits from an employer paid because of
include:the victim's death due to the attack are also not
- Exemption from income taxes for those individualstaxable, whether paid in full or in tranches.
who died as a result of the September 11, 2001 attack,- His worker's compensation benefits are not taxable
the April 19, 1995 Oklahoma City attack and theunder this tax relief.
anthrax poisonings before and after September 11,- Terrorist victims' estates are not taxable up to the
2001. Exemption is applicable from the year before thefirst $8.5 million value of net assets.
attacks to the year of death.- The victim's family can receive benefits from
The amount of exemption per qualified individual ischarities without those charities being disqualified from
$10,000 minimum without regard to the person's taxtheir tax-free status
liability for the relevant years. This means that if the- Employers can establish foundations solely for the
victim's income tax is less than $10,000, it is assumedmonetary benefit of employee-victims' families
that he has also paid the difference between his- Latitude is granted to the Treasury Department in
actual liability and the $10,000 exemption. Exception topostponing tax filing deadlines, extending deadlines for
this is that it cannot be applied to monies receivedtax payment (except payroll taxes) and other filings of
from retirement plans or IRAs to the victim's estate ortaxpayers affected by declarations of disaster by a
beneficiaries, but applies to the victim's final paycheckPresident.