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Internal Revenue Code, § 7508. Time For Performing Certain Acts Postponed By Reason Of Service In Combat Zone Or Contingency Operation

I.R.C. § 7508(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--
I.R.C. § 7508(a)(1)
Whether any of the following acts was performed within the time prescribed therefor:
I.R.C. § 7508(a)(1)(A)
Filing any return of income, estate, gift, employment, or excise tax;
I.R.C. § 7508(a)(1)(B)
Payment of any income, estate, gift, employment, or excise tax or any installment thereof or of any other liability to the United States in respect thereof;
I.R.C. § 7508(a)(1)(C)
Filing a petition with the Tax Court for redetermination of a deficiency, or for review of a decision rendered by the Tax Court;
I.R.C. § 7508(a)(1)(D)
Allowance of a credit or refund of any tax;
I.R.C. § 7508(a)(1)(E)
Filing a claim for credit or refund of any tax;
I.R.C. § 7508(a)(1)(F)
Bringing suit upon any such claim for credit or refund;
I.R.C. § 7508(a)(1)(G)
Assessment of any tax;
I.R.C. § 7508(a)(1)(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.R.C. § 7508(a)(1)(I)
Collection, by the Secretary, by levy or otherwise, of the amount of any liability in respect of any tax;
I.R.C. § 7508(a)(1)(J)
Bringing suit by the United States, or any officer on its behalf, in respect of any liability in respect of any tax; and
I.R.C. § 7508(a)(1)(K)
Any other act required or permitted under the internal revenue laws specified by the Secretary;
I.R.C. § 7508(a)(2)
The amount of any credit or refund; and
I.R.C. § 7508(a)(3)
Any certification of a seriously delinquent tax debt under section 7345.
I.R.C. § 7508(b) Special Rule For Overpayments
I.R.C. § 7508(b)(1) In General
Subsection (a) shall not apply for purposes of determining the amount of interest on any overpayment of tax.
I.R.C. § 7508(b)(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
I.R.C. § 7508(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.
I.R.C. § 7508(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).
I.R.C. § 7508(e) Exceptions
I.R.C. § 7508(e)(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.
I.R.C. § 7508(e)(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).
I.R.C. § 7508(e)(3) Collection Period After Assessment Not Extended As A Result Of Hospitalization
With respect to any period of continuous qualified hospitalization described in subsection (a) and the next 180 days thereafter, subsection (a) shall not apply in the application of section 6502.
I.R.C. § 7508(f) Treatment Of Individuals Performing Desert Shield Services
I.R.C. § 7508(f)(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).
I.R.C. § 7508(f)(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.
I.R.C. § 7508(g) Qualified Hospitalization
For purposes of subsection (a), the term “qualified hospitalization” means--
I.R.C. § 7508(g)(1)
any hospitalization outside the United States, and
I.R.C. § 7508(g)(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; Jan. 2, 1975, Pub. L. 93-597, 5(a), 88 Stat. 1952; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(a)(51), (b)(13)(A), 90 Stat. 1831, 1834; Oct. 20, 1976, Pub. L. 94-569, 3(e), 90 Stat. 2700; Dec. 24, 1980, Pub. L. 96-589, 6(i)(14), 94 Stat. 3411; Jan. 12, 1983, Pub. L. 97-448, title III, 307(d), 96 Stat. 2407; Oct. 22, 1986, Pub. L. 99-514, title XVII, 1708(a)(4), 100 Stat. 2782; Jan. 30, 1991, Pub. L. 102-2, Sec. 1, 105 Stat. 5; Jan. 23, 2002, Pub. L. 107-134, title I, Sec. 112(b), 115 Stat. 2427; Nov. 11, 2003, Pub. L. 108-121, title I, Sec. 104, 117 Stat. 1335; Sept. 23, 2005, Pub. L. 109-73, title IV, Sec. 403(a), 119 Stat. 2016; Pub. L. 114-94, Div. C, title XXXII, Sec. 32101(d), Dec. 4, 2015; Pub. L. 114-113, Div. Q, title III, Sec. 309(a), Dec. 18, 2015.)
BACKGROUND NOTES
AMENDMENTS
2015 — Subsec. (e)(3). Pub. L. 114-113, Div. Q, Sec. 309(a), added par. (3).
Subsec. (a)(2)-(3). Pub. L. 114-94, Sec. 32101(d), amended subsec. (a) by substituting “; and” for the period at the end of par. (2) and by adding par. (3).
2005 — Subsec. (a)(1)(A), (B). Pub. L. 109-73, Sec. 403(a), amended subpar. (A) and (B). Before amendment, it read as follows:
“(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;”.
2003 — Sec. 7508. Pub. L. 108-121, Sec. 104(b)(2), amended the heading of Sec. 7508 by inserting “or contingency operation” after “combat zone”.
Subsec. (a). Pub. L. 108-121, Sec. 104(a), amended subsec. (a) by inserting “, 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”; by inserting in the first sentence “or at any time during the period of such contingency operation” after “for purposes of such section”; by inserting “or operation” after “such an area”; and by inserting “or operation” after “such area”.
Subsec. (d). Pub. L. 108-121, Sec. 104(b)(1), amended subsec. (d) by inserting “or contingency operation” after “area”.
2002--Subsec. (a)(1)(K). Pub. L. 107-134, Sec. 112(b), amended subpar. (K) by striking “in regulations prescribed under this section” after “revenue laws specified”.
1991--Subsec. (a). Pub. L. 102-2 amended subsec. (a) by striking “outside the United States” after “or hospitalized” the first place it appeared, and by substituting “the period of continuous qualified hospitalization” for “the period of continuous hospitalization outside the United States”.
Subsec. (a)(2). Pub. L. 102-2 amended par. (2) by striking “(including interest)” after “credit or refund”.
Subsec. (b)-(d). Pub. L. 102-2 redesignated subsecs. (b)-(d) as subsecs. (c)-(e), respectively, and added new subsec. (b).
Subsec. (f). Pub. L. 102-2 added subsec. (f).
Subsec. (g). Pub. L. 102-2 added subsec. (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, 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, 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, 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 2015 AMENDMENTS
Amendment by Pub. L. 114-113, Div. Q, Sec. 309(a), effective for taxes assessed before, on, or after the date of the enactment of this Act [Enacted: Dec. 18, 2015].
Amendments by Pub. L. 114-94, Sec. 32101(d), effective on the date of the enactment of this Act [Enacted: Dec. 4, 2015].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by Pub. L. 109-73, Sec. 403(a), applicable for any period for performing an act which has not expired before August 25, 2005.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by Pub. L. 108-121, Sec. 104, applicable to any period for performing an act which has not expired before the date of the enactment of this Act [Enacted: Nov. 11, 2003].
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-134, Sec. 112(b), applicable to disasters and terroristic or military actions occurring on or after September 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 the date of the enactment of this Act [Enacted: Jan. 23, 2002].
EFFECTIVE DATE OF 1991 AMENDMENTS
Amendments by Pub. L. 102-2, Sec. 1, 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 the first day of the 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.”
TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE SINAI PENINSULA OF EGYPT
Section 11028 of Pub. L. 115-97 provided that:
“(a) IN GENERAL.—For purposes of the following provisions of the Internal Revenue Code of 1986, with respect to the applicable period, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):
* * *
(8) Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone).
“(b) QUALIFIED HAZARDOUS DUTY AREA.—For purposes of this section, the term ‘‘qualified hazardous duty area’’ means the Sinai Peninsula of Egypt, if as of the date of the enactment of this section any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location. Such term includes such location only during the period such entitlement is in effect.
“(c) APPLICABLE PERIOD.—
“(1) IN GENERAL.—Except as provided in paragraph (2), the applicable period is—
“(A) the portion of the first taxable year ending after June 9, 2015, which begins on such date, and
“(B) any subsequent taxable year beginning before January 1, 2026.
“(2) WITHHOLDING.—In the case of subsection (a)(5), the applicable period is—
“(A) the portion of the first taxable year ending after the date of the enactment of this Act [Enacted: Dec. 22, 2017] which begins on such date, and
“(B) any subsequent taxable year beginning before January 1, 2026.
“(d) EFFECTIVE DATE.—
“(1) IN GENERAL.—Except as provided in paragraph (2), the provisions of this section shall take effect on June 9, 2015.
“(2) WITHHOLDING.—Subsection (a)(5) shall apply to remuneration paid after the date of the enactment of this Act.”
QUALIFIED HAZARDOUS DUTY AREA TREATED AS COMBAT ZONE
Section 1 of Pub. L. 106-21, provided that:
“(a) General rule--For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):”
* * *
“(8) Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone.”
“(b) Qualified Hazardous Duty Area.--For purposes of this section, the term “qualified hazardous duty area” means any area of the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the Adriatic Sea, and the northern Ionian Sea (above the 39th parallel) during the period (which includes the date of the enactment of this Act) that any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay: duty subject to hostile fire or imminent danger) for services performed in such area.
“(c) Special Rule for Section 7508.--Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Allied Force outside the United States while deployed away from such individual's permanent duty station, the term “qualified hazardous duty area” includes, during the period for which the entitlement referred to in subsection (b) is in effect, any area in which such services are performed.
“(d) Effective Dates.--
“(1) In general.--Except as provided in paragraph (2), this section shall take effect on March 24, 1999.
“(2) Withholding.--Subsection (a)(5) shall apply to renumeration paid after the date of the enactment of this Act [Enactment Date: April 19, 1999].”
QUALIFIED HAZARDOUS DUTY AREA TREATED AS COMBAT ZONE
Section 1(a), (b) of Pub. L. 104-117 provided that:
“(a) General Rule.--For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):
“(8) Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone).
“(b) Qualified Hazardous Duty Area.--For purposes of this section, the term “qualified hazardous duty area” means Bosnia and Herzegovina, Croatia, or Macedonia, if as of the date of the enactment of this section any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger) for services performed in such country. Such term includes any such country only during the period such entitlement is in effect. Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Joint Endeavor outside the United States while deployed away from such individual's permanent duty station, the term “qualified hazardous duty area” includes, during the period for which such entitlement is in effect, any area in which such services are performed.”
TRANSFER OF FUNCTIONS
The office of Postmaster General of the Post Office Department was abolished and all functions, powers, and duties of the Postmaster General were transferred to the United States Postal Service by Pub. L. 91-375, 4(a), Aug. 12, 1970, 84 Stat. 773, set out as a note under section 201 of Title 39, Postal Service.