26 U.S.C. § 7508 — Time for performing certain acts post-

Page 3945 TITLE 26—INTERNAL REVENUE CODE § 7508 or trust company or against assets transferred from it to an individual or corporate trustee or agent, no tax shall be assessed or collected, or paid into the Treasury of the United States, on account of such bank or trust company, such in- dividual or corporate trustee or such agent, which shall diminish the assets thereof which are available for the payment of such depositor claims and which are necessary for the full pay- ment thereof. The term ‘‘agent’’, as used in this subsection, shall be deemed to include a cor- poration acting as a liquidating agent. (c) Refund; reassessment; statutes of limitation (1) Any such tax collected shall be deemed to be erroneously collected, and shall be refunded subject to all provisions and limitations of law, so far as applicable, relating to the refunding of taxes. (2) Any tax, the assessment, collection, or pay- ment of which is barred under subsection (a), or any such tax which has been abated or remitted shall be assessed or reassessed whenever it shall appear that payment of the tax will not dimin- ish the assets as aforesaid. (3) Any tax, the assessment, collection, or pay- ment of which is barred under subsection (b), or any such tax which has been refunded shall be assessed or reassessed after full payment of such claims of depositors to the extent of the remain- ing assets segregated or transferred as described in subsection (b). (4) The running of the statute of limitations on the making of assessment and collection shall be suspended during, and for 90 days be- yond, the period for which, pursuant to this sec- tion, assessment or collection may not be made, and a tax may be reassessed as provided in para- graphs (2) and (3) of this subsection and col- lected, during the time within which, had there been no abatement, collection might have been made. (d) Exception of employment taxes This section shall not apply to any tax im- posed by chapter 21 or chapter 23. (Aug. 16, 1954, ch. 736, 68A Stat. 897; Pub. L. 94–455, title XIX, § 1906(a)(50), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1831, 1834.) Editorial Notes AMENDMENTS 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Subsec. (c). Pub. L. 94–455, § 1906(a)(50), struck out ‘‘after May 28, 1938’’ in par. (2) after ‘‘or remitted’’ and in par. (3) after ‘‘been refunded’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective on first day of 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. § 7508. Time for performing certain acts post- poned by reason of service in combat zone or contingency operation (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 des- ignated 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 perma- nent duty station while participating in an oper- ation 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 dur- ing such time, the period of service in such area or operation, plus the period of continuous qualified hospitalization attributable to such in- jury, and the next 180 days thereafter, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability (in- cluding any interest, penalty, additional amount, or addition to the tax) of such indi- vidual— (1) Whether any of the following acts was performed within the time prescribed therefor: (A) Filing any return of income, estate, gift, employment, or excise tax; (B) Payment of any income, estate, gift, employment, or excise tax or any install- ment thereof or of any other liability to the United States in respect thereof; (C) Filing a petition with the Tax Court, or filing a notice of appeal from a decision of the Tax Court; (D) Allowance of a credit or refund of any tax; (E) Filing a claim for credit or refund of any tax; (F) Bringing suit upon any such claim for credit or refund; (G) Assessment of any tax; (H) Giving or making any notice or de- mand for the payment of any tax, or with re- spect to any liability to the United States in respect of any tax; (I) Collection, by the Secretary, by levy or otherwise, of the amount of any liability in respect of any tax; (J) Bringing suit by the United States, or any officer on its behalf, in respect of any li- ability in respect of any tax or in respect of any erroneous refund; and (K) Any other act required or permitted under the internal revenue laws specified by the Secretary; (2) The amount of any credit or refund; and (3) Any certification of a seriously delin- quent tax debt under section 7345. (b) Special rule for overpayments (1) In general Subsection (a) shall not apply for purposes of determining the amount of interest on any overpayment of tax. (2) Special rules If an individual is entitled to the benefits of subsection (a) with respect to any return and Page 3946 TITLE 26—INTERNAL REVENUE CODE § 7508 such return is timely filed (determined after the application of such subsection), sub- sections (b)(3) and (e) of section 6611 shall not apply. (c) Application to spouse The provisions of this section shall apply to the spouse of any individual entitled to the ben- efits of subsection (a). Except in the case of the combat zone designated for purposes of the Viet- nam 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. (d) Missing status The period of service in the area or contin- gency operation referred to in subsection (a) shall include the period during which an indi- vidual entitled to benefits under subsection (a) is in a missing status, within the meaning of section 6013(f)(3). (e) Exceptions (1) Tax in jeopardy; cases under title 11 of the United States Code and receiverships; and transferred assets Notwithstanding the provisions of sub- section (a), any action or proceeding author- ized 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 au- thorized 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 col- lection of such amount by levy or otherwise as authorized by law. There shall be excluded from any amount assessed or collected pursu- ant to this paragraph the amount of interest, penalty, additional amount, and addition to the tax, if any, in respect of the period dis- regarded 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 deliv- ery 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. (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 pro- ceeding it is ascertained that the person con- cerned is entitled to the benefits of subsection (a). (3) Collection period after assessment not ex- tended as a result of hospitalization With respect to any period of continuous qualified hospitalization described in sub- section (a) and the next 180 days thereafter, subsection (a) shall not apply in the applica- tion of section 6502. (f) Treatment of individuals performing Desert Shield services (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). (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 end- ing on the date on which any portion of the area referred to in subparagraph (A) is des- ignated by the President as a combat zone pursuant to section 112. (g) Qualified hospitalization For purposes of subsection (a), the term ‘‘qualified hospitalization’’ means— (1) any hospitalization outside the United States, and (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 ap- plying this section with respect to the spouse of an individual entitled to the benefits of sub- section (a). (Aug. 16, 1954, ch. 736, 68A Stat. 898; Pub. L. 93–597, § 5(a), Jan. 2, 1975, 88 Stat. 1952; Pub. L. 94–455, title XIX, § 1906(a)(51), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1831, 1834; Pub. L. 94–569, § 3(e), Oct. 20, 1976, 90 Stat. 2700; Pub. L. 96–589, § 6(i)(14), Dec. 24, 1980, 94 Stat. 3411; Pub. L. 97–448, title III, § 307(d), Jan. 12, 1983, 96 Stat. 2407; Pub. L. 99–514, title XVII, § 1708(a)(4), Oct. 22, 1986, 100 Stat. 2782; Pub. L. 102–2, § 1(a)–(c), Jan. 30, 1991, 105 Stat. 5; Pub. L. 107–134, title I, § 112(b), Jan. 23, 2002, 115 Stat. 2434; Pub. L. 108–121, title I, § 104(a)–(b)(2), Nov. 11, 2003, 117 Stat. 1338; Pub. L. 109–73, title IV, § 403(a), Sept. 23, 2005, 119 Stat. 2027; Pub. L. 114–94, div. C, title XXXII, § 32101(d), Dec. 4, 2015, 129 Stat. 1732; Pub. L. 114–113, div. Q, title III, § 309(a), Dec. 18, 2015, 129 Stat. 3089; Pub. L. 117–58, div. H, title V, § 80502(a), Nov. 15, 2021, 135 Stat. 1335.) Page 3947 TITLE 26—INTERNAL REVENUE CODE § 7508 Editorial Notes AMENDMENTS 2021—Subsec. (a)(1)(C). Pub. L. 117–58, § 80502(a)(1), added subpar. (C) and struck out former subpar. (C) which read as follows: ‘‘Filing a petition with the Tax Court for redetermination of a deficiency, or for review of a decision rendered by the Tax Court;’’. Subsec. (a)(1)(J). Pub. L. 117–58, § 80502(a)(2), inserted ‘‘or in respect of any erroneous refund’’ after ‘‘any tax’’. 2015—Subsec. (a)(3). Pub. L. 114–94 added par. (3). Subsec. (e)(3). Pub. L. 114–113 added par. (3). 2005—Subsec. (a)(1)(A), (B). Pub. L. 109–73 amended subpars. (A) and (B) generally. Prior to amendment, text 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 (ex- cept income tax withheld at source and income tax im- posed 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—Pub. L. 108–121, § 104(b)(2), inserted ‘‘or contin- gency operation’’ after ‘‘combat zone’’ in section catch- line. Subsec. (a). Pub. L. 108–121, § 104(a), in introductory provisions, inserted ‘‘, or when deployed outside the United States away from the individual’s permanent duty station while participating in an operation des- ignated 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 contin- gency operation by operation of law’’ after ‘‘section 112’’, ‘‘or at any time during the period of such contin- gency operation’’ after ‘‘for purposes of such section’’, ‘‘or operation’’ after ‘‘such an area’’, and ‘‘or oper- ation’’ after ‘‘such area’’. Subsec. (d). Pub. L. 108–121, § 104(b)(1), inserted ‘‘or contingency operation’’ after ‘‘area’’. 2002—Subsec. (a)(1)(K). Pub. L. 107–134 struck out ‘‘in regulations prescribed under this section’’ before ‘‘by the Secretary’’. 1991—Subsec. (a). Pub. L. 102–2, § 1(c)(1), in introduc- tory provisions, struck out ‘‘outside the United States’’ before ‘‘as a result of injury’’ and substituted ‘‘the pe- riod of continuous qualified hospitalization’’ for ‘‘the period of continuous hospitalization outside the United States’’. Subsec. (a)(2). Pub. L. 102–2, § 1(b)(2), struck out ‘‘(in- cluding interest)’’ after ‘‘refund’’. Subsecs. (b) to (e). Pub. L. 102–2, § 1(b)(1), added sub- sec. (b) and redesignated former subsecs. (b) to (d) as (c) to (e), respectively. Subsecs. (f), (g). Pub. L. 102–2, § 1(a), (c)(2), added sub- secs. (f) and (g). 1986—Subsec. (b). Pub. L. 99–514 amended last sen- tence generally. Prior to amendment, last sentence read as follows: ‘‘The preceding sentence shall not cause this section to apply to any spouse for any tax- able 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 com- batant activities in that zone, in the case of any com- bat zone other than that referred to in paragraph (1).’’ 1983—Subsec. (b)(1). Pub. L. 97–448 substituted ‘‘De- cember 31, 1982’’ for ‘‘January 2, 1978’’. 1980—Subsec. (d). Pub. L. 96–589 substituted ‘‘cases under title 11 of the United States Code and receiver- ships’’ 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 ‘‘hos- pitalized outside the’’ and ‘‘hospitalization outside the’’, and struck out ‘‘or his delegate’’ after ‘‘Sec- retary’’. Subsec. (b). Pub. L. 94–569 substituted ‘‘taxable year beginning’’ for ‘‘taxable year beginning more than 2 years after’’ in provisions preceding par. (1), sub- stituted ‘‘after January 2, 1978’’ for ‘‘the date of the en- actment 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 appear- ing. 1975—Subsecs. (b) to (d). Pub. L. 93–597 added subsecs. (b) and (c) and redesignated former subsec. (b) as (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 117–58, div. H, title V, § 80502(b), Nov. 15, 2021, 135 Stat. 1336, provided that: ‘‘The amendments made by this section [amending this section] shall apply to any period for performing an act which has not expired before the date of the enactment of this Act [Nov. 15, 2021].’’ EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–113, div. Q, title III, § 309(b), Dec. 18, 2015, 129 Stat. 3090, provided that: ‘‘The amendment made by this section [amending this section] shall apply to taxes assessed before, on, or after the date of the enact- ment of this Act [Dec. 18, 2015].’’ EFFECTIVE DATE OF 2005 AMENDMENT Pub. L. 109–73, title IV, § 403(c), Sept. 23, 2005, 119 Stat. 2027, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply for any period for performing an act which has not expired be- fore August 25, 2005.’’ EFFECTIVE DATE OF 2003 AMENDMENT Pub. L. 108–121, title I, § 104(c), Nov. 11, 2003, 117 Stat. 1338, provided that: ‘‘The amendments made by this section [amending this section] shall apply to any pe- riod for performing an act which has not expired before the date of the enactment of this Act [Nov. 11, 2003].’’ EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–134 applicable to disasters and terroristic or military actions occurring on or after Sept. 11, 2001, with respect to any action of the Sec- retary of the Treasury, the Secretary of Labor, or the Pension Benefit Guaranty Corporation occurring on or after Jan. 23, 2002, see section 112(f) of Pub. L. 107–134, set out as a note under section 6081 of this title. EFFECTIVE DATE OF 1991 AMENDMENT Pub. L. 102–2, § 1(d), Jan. 30, 1991, 105 Stat. 6, provided that: ‘‘The amendments made by this section [amend- ing this section] 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, Bank- ruptcy, 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 first day of first month which begins more than 90 days after Oct. Page 3948 TITLE 26—INTERNAL REVENUE CODE § 7508A 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 Pub. L. 93–597, § 5(b), Jan. 2, 1975, 88 Stat. 1953, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall apply to taxable years ending on or after February 28, 1961.’’ TRANSFER OF FUNCTIONS Office of Postmaster General of Post Office Depart- ment abolished and all functions, powers, and duties of Postmaster General transferred to United States Post- al 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, Post- al Service. Executive Documents EX. ORD. NO. 12750. DESIGNATION OF ARABIAN PENINSULA AREAS, AIRSPACE, AND ADJACENT WATERS AS PERSIAN GULF DESERT SHIELD AREA Ex. Ord. No. 12750, Feb. 14, 1991, 56 F.R. 6785, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 7508 of the Internal Revenue Code of 1986 (26 U.S.C. 7508), I hereby designate, for pur- poses of that section, the following locations, including the air space above such locations, as the Persian Gulf Desert Shield area in which any individual who per- formed Desert Shield services (including the spouse of such individual) is entitled to the benefits of section 7508 of the Internal Revenue Code of 1986: —the Persian Gulf —the Red Sea —the Gulf of Oman —that portion of the Arabian Sea that lies north of 10 degrees north latitude and west of 68 degrees east longitude —the Gulf of Aden —the total land area of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. GEORGE BUSH. § 7508A. Authority to postpone certain deadlines by reason of Federally declared disaster, sig- nificant fire, or terroristic or military actions (a) In general In the case of a taxpayer determined by the Secretary to be affected by a federally declared disaster (as defined by section 165(i)(5)(A)), a sig- nificant fire, or a terroristic or military action (as defined in section 692(c)(2)), the Secretary may specify a period of up to 1 year that may be disregarded in determining, under the internal revenue laws, in respect of any tax liability of such taxpayer— (1) whether any of the acts described in para- graph (1) of section 7508(a) were performed within the time prescribed therefor (deter- mined without regard to extension under any other provision of this subtitle for periods after the date (determined by the Secretary) of such disaster, fire, or action), (2) the amount of any interest, penalty, addi- tional amount, or addition to the tax for peri- ods after such date, and (3) the amount of any credit or refund. (b) Special rules regarding pensions, etc. In the case of a pension or other employee benefit plan, or any sponsor, administrator, par- ticipant, beneficiary, or other person with re- spect to such plan, affected by a disaster, fire, or action described in subsection (a), the Secretary may specify a period of up to 1 year which may be disregarded in determining the date by which any action is required or permitted to be com- pleted under this title. No plan shall be treated as failing to be operated in accordance with the terms of the plan solely as the result of dis- regarding any period by reason of the preceding sentence. (c) Special rules for overpayments The rules of section 7508(b) shall apply for pur- poses of this section. (d) Mandatory 60-day extension (1) In general In the case of any qualified taxpayer, the pe- riod— (A) beginning on the earliest incident date specified in the declaration to which the dis- aster area referred to in paragraph (2) re- lates, and (B) ending on the date which is 60 days after the later of such earliest incident date described in subparagraph (A) or the date such declaration was issued, shall be disregarded in determining, under the internal revenue laws, in respect of any tax li- ability of such qualified taxpayer, whether any of the acts described in subparagraphs (A) through (F) of section 7508(a)(1) were per- formed within the time prescribed therefor (determined without regard to extension under any other provision of this subtitle for periods after the date determined under subparagraph (B)). (2) Qualified taxpayer For purposes of this subsection, the term ‘‘qualified taxpayer’’ means— (A) any individual whose principal resi- dence (for purposes of section 1033(h)(4)) is located in a disaster area, (B) any taxpayer if the taxpayer’s prin- cipal place of business (other than the busi- ness of performing services as an employee) is located in a disaster area, (C) any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assist- ing in a disaster area, (D) any taxpayer whose records necessary to meet a deadline for an act described in section 7508(a)(1) are maintained in a dis- aster area, (E) any individual visiting a disaster area who was killed or injured as a result of the disaster, and (F) solely with respect to a joint return, any spouse of an individual described in any preceding subparagraph of this paragraph. (3) Disaster area For purposes of this subsection, the term ‘‘disaster area’’ means an area in which a major disaster for which the President pro- vides financial assistance under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5174) oc- curs. (4) Application to rules regarding pensions In the case of any person described in sub- section (b), a rule similar to the rule of para-