Washington (Dec. 19, 2002) -- A provision in the 2001 tax relief act which excludes Holocaust restitution payments from federal income tax was written permanently into law this week.
President Bush signed into law the Holocaust Restitution Tax Fairness Act of 2002, which makes permanent a provision exempting Holocaust victims from paying any taxes on reparation payments.
The measure repeals a 2010 sunset on the exclusion from federal tax received by Holocaust victims under the Economic Growth and Tax Relief Reconciliation Act of 2001. Without the repeal, the victims’ compensation would be taxed starting in 2010.
-- Electronic Accountant Newswire staff
