26 U.S.C. § 112: Certain combat zone compensation of members of the Armed Forces

served in a combat zone, or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone; but this paragraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone. served in a combat zone, or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone; but this paragraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone. The term “commissioned officer” does not include a commissioned warrant officer. The term “combat zone” means any area which the President of the United States by Executive Order designates, for purposes of this section or corresponding provisions of prior income tax laws, as an area in which Armed Forces of the United States are or have engaged in combat. Service is performed in a combat zone only if performed on or after the date designated by the President by Executive Order as the date of the commencing of combatant activities in such zone, and on or before the date designated by the President by Executive Order as the date of the termination of combatant activities in such zone. The term “compensation” does not include pensions and retirement pay. the highest rate of basic pay payable for such month to any enlisted member of the Armed Forces of the United States at the highest pay grade applicable to enlisted members, and in the case of an officer entitled to special pay under section 310, or paragraph (1) or (3) of section 351(a), of title 37, United States Code, for such month, the amount of such special pay payable to such officer for such month. Gross income does not include compensation received for active service as a member of the Armed Forces of the United States for any month during any part of which such member is in a missing status (as defined in section 551(2) of title 37 , United States Code) during the Vietnam conflict as a result of such conflict, other than a period with respect to which it is officially determined under section 552(c) of such title 37 that he is officially absent from his post of duty without authority. Gross income does not include compensation received for active service as an employee for any month during any part of which such employee is in a missing status during the Vietnam conflict as a result of such conflict. For purposes of this paragraph, the terms “active service”, “employee”, and “missing status” have the respective meanings given to such terms by section 5561 of title 5 of the United States Code. For purposes of this subsection, the Vietnam conflict began February 28, 1961 , and ends on the date designated by the President by Executive order as the date of the termination of combatant activities in Vietnam. For purposes of this subsection, an individual is in a missing status as a result of the Vietnam conflict if immediately before such status began he was performing service in Vietnam or was performing service in Southeast Asia in direct support of military operations in Vietnam. Section 2(a)(3) (relating to special rule where deceased spouse was in missing status). Section 112 (relating to the exclusion of certain combat pay of members of the Armed Forces). Section 692 (relating to income taxes of members of Armed Forces on death). Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.). Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces). Section 4253(d) (relating to the taxation of phone service originating from a combat zone from members of the Armed Forces). Section 6013(f)(1) (relating to joint return where individual is in missing status). Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone). the Sinai Peninsula of Egypt. Kenya. Mali. Burkina Faso. Chad.” Section 2(a)(3) (relating to special rule where deceased spouse was in missing status). Section 112 (relating to the exclusion of certain combat pay of members of the Armed Forces). Section 692 (relating to income taxes of members of Armed Forces on death). Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.). Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces). Section 4253(d) (relating to the taxation of phone service originating from a combat zone from members of the Armed Forces). Section 6013(f)(1) (relating to joint return where individual is in missing status). Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone). 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 [ Apr. 19, 1999 ]) 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. 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. Except as provided in paragraph (2), this section shall take effect on March 24, 1999 . Subsection (a)(5) shall apply to remuneration paid after the date of the enactment of this Act [ Apr. 19, 1999 ].” Section 2(a)(3) (relating to special rule where deceased spouse was in missing status). Section 112 (relating to the exclusion of certain combat pay of members of the Armed Forces). Section 692 (relating to income taxes of members of Armed Forces on death). Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.). Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces). Section 4253(d) (relating to the taxation of phone service originating from a combat zone from members of the Armed Forces). Section 6013(f)(1) (relating to joint return where individual is in missing status). Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone). 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 [ Mar. 20, 1996 ] 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. Except as provided in paragraph (2), the provisions of and amendments made by this section shall take effect on November 21, 1995 . Subsection (a)(5) and the amendment made by subsection (c) shall apply to remuneration paid after the date of the enactment of this Act [ Mar. 20, 1996 ].” If refund or credit of any overpayment for any taxable year resulting from the application of the amendment made by the first section of this Act [amending this section] (including interest, additions to the tax, and additional amounts) is prevented at any time before the expiration of the applicable period specified in paragraph (3) by the operation of any law or rule of law, such refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor is filed before the expiration of such applicable period. the day which is one year after the date of the enactment of this Act [ Apr. 26, 1972 ], or the day which is 2 years after the date on which it is determined that the individual’s missing status (within the meaning of section 112(d) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) has terminated for purposes of such section 112.”