N.Y. Tax Law § 696 — Income taxes of members of armed forces, astronauts, and victims of certain terrorist attacks

§ 696. Income taxes of members of armed forces, astronauts, and\nvictims of certain terrorist attacks.--(a) Time to be disregarded.--In\nthe case of an individual serving in the armed forces of the United\nStates, or serving in support of such armed forces, in an area\ndesignated by the president of the United States by executive order as a\n"combat zone" at any time during the period designated by the president\nby executive order as the period of combatant activities in such zone,\nor when deployed outside the United States away from the individual's\npermanent duty station while participating in an operation that is\neither designated by the United States secretary of defense as a\n"contingency operation" or which became a contingency operation due to\noperation of law during the period of such contingency operation, or\nhospitalized inside or outside the state as a result of injury received\nwhile serving in such an area or operation during such time, the period\nof service in such area or operation, plus the period of continuous\nhospitalization inside or outside the state attributable to such injury,\nand the next one hundred eighty days thereafter, shall be disregarded in\ndetermining, under this article, in respect of the income tax liability\n(including any interest, penalty, or addition to the tax) of such\nindividual --\n (1) Whether any of the following acts was performed within the time\nprescribed therefor:\n (A) filing any return of income tax (except withholding tax);\n (B) payment of any income tax (except withholding tax) or any\ninstallment thereof or of any other liability to the state, in respect\nthereof;\n (C) filing a petition with the tax commission for credit or refund or\nfor redetermination of a deficiency, or application for review of a\ndecision rendered by the tax commission;\n (D) allowance of a credit or refund of income tax;\n (E) filing a claim for credit or refund of income tax;\n (F) assessment of income tax;\n (G) giving or making any notice or demand for the payment of any\nincome tax, or with respect to any liability to the state in respect of\nincome tax;\n (H) collection, by the tax commission, by levy or otherwise of the\namount of any liability in respect of income tax;\n (I) bringing suit by the state, or any officer, on its behalf, in\nrespect of any liability in respect of income tax; and\n (J) any other act required or permitted under this article or\nspecified in regulations prescribed under this section by the tax\ncommission.\n (2) The amount of any credit or refund.\n (b) Special rule for overpayments. -- (1) Subsection (a) of this\nsection shall not apply for purposes of determining the amount of\ninterest on any overpayment of tax.\n (2) If an individual is entitled to the benefits of subsection (a) of\nthis section with respect to any return, amended return, or claim for\ncredit or refund, and such return, amended return or claim is timely\nfiled (determined after the application of such subsection), paragraph\nthree of subsection (a) and subsection (c) of section six hundred\neighty-eight of this article shall not apply.\n (c) Action taken before ascertainment of right to benefits.--The\nassessment or collection of the tax imposed by this article or of any\nliability to the state in respect of such tax, or any action or\nproceeding by or on behalf of the state in connection therewith, may be\nmade, taken, begun, or prosecuted in accordance with law, without regard\nto the provisions of subsection (a), unless prior to such assessment,\ncollection, action, or proceeding it is ascertained that the person\nconcerned is entitled to the benefits of subsection (a).\n (d) Members of armed forces dying in action.--In the case of any\nperson who dies while in active service as a member of the armed forces\nof the United States, if such death occurred while serving in a combat\nzone during a period of combatant activities in such zone, as described\nin subsection (a), or as a result of wounds, disease or injury incurred\nwhile so serving, the tax imposed by this article shall not apply with\nrespect to the taxable year in which falls the date of his or her death,\nor with respect to any prior taxable year ending on or after the first\nday so served in a combat zone, and no returns shall be required in\nbehalf of such person or his or her estate for such year; and the tax\nfor any such taxable year which is unpaid at the date of death,\nincluding interest, additions to tax and penalties, if any, shall not be\nassessed and, if assessed, the assessment shall be abated and, if\ncollected, shall be refunded to the legal representative of such estate\nif one has been appointed and has qualified, or, if no legal\nrepresentative has been appointed or has qualified, to the surviving\nspouse.\n (e) Treatment of individuals performing Desert Shield services. -- (1)\nAny individual who performed Desert Shield services shall be entitled to\nthe benefits of subsections (a) and (b) of this section in the same\nmanner as if such services were services referred to in subsection (a)\nof this section.\n (2) For purposes of this subsection, the term "Desert Shield services"\nmeans any services in the armed forces of the United States or in\nsupport of such armed forces if\n (A) such services are performed in the area designated by the\npresident of the United States as the "Persian Gulf Desert Shield area",\nand\n (B) such services are performed during the period beginning on August\nsecond, nineteen hundred ninety, and ending on the date on which any\nportion of the area referred to in subparagraph (A) of this paragraph is\ndesignated by the president as a combat zone pursuant to section one\nhundred twelve of the internal revenue code.\n (f) Relief for personnel under hostile fire. -- For purposes of this\nsection, members of the armed forces of the United States who perform\nmilitary service in an area outside an area designated by the president\nof the United States by executive order as a "combat zone", which\nservice is in direct support of military operations in such zone and is\nperformed under conditions which qualify such members for hostile fire\npay, as authorized under subdivision (a) of section nine of the federal\nuniformed services pay act of nineteen hundred sixty-three, shall,\nduring the period of such qualifying service, be deemed to have served\nin such combat zone.\n (g) Application to spouse.-- The provisions of subsections (a), (b),\n(c), (e) and (f) of this section shall apply to the spouse of any\nindividual entitled to the benefits of subsection (a) of this section;\nprovided, however, that such subsections shall not apply for any spouse\nfor any taxable year beginning more than two years after the date\ndesignated under section one hundred twelve of the internal revenue code\nas the date of termination of combatant activities in a combat zone.\n (h) Individuals dying as a result of certain attacks and\nastronauts.--(1) General. In the case of a specified terrorist victim or\nastronaut, any tax imposed by this article shall not apply--\n (A) with respect to the taxable year in which falls the date of death;\nand\n (B) with respect to any prior taxable year in the period beginning\nwith the last taxable year ending before the taxable year in which the\nwounds or injury referred to in paragraph three of this subsection were\nincurred.\n (2) Taxation of certain benefits. Paragraph one of this subsection\nshall not apply to the amount of any tax imposed by this article which\nwould be computed by only taking into account the items of income, gain,\nor other amounts determined by the United States secretary of the\ntreasury to be taxable pursuant to paragraph 692(d)(3) of the internal\nrevenue code.\n (3) Specified terrorist victim. For purposes of this subsection, the\nterm "specified terrorist victim" means any decedent who dies as a\nresult of wounds or injury incurred as a result of the terrorist attacks\nagainst the United States on September eleventh, two thousand one,\nprovided, however, such term shall not include any individual identified\nby the attorney general of the United States to have been a participant\nor conspirator in any such attack or a representative of such an\nindividual.\n (4) Astronaut. For purposes of this subsection, the term "astronaut"\nmeans any astronaut whose death occurs in the line of duty after\nDecember thirty-first, two thousand two.\n (i) Collection period after assessment not extended as a result of\nhospitalization. With respect to any period of continuous\nhospitalization described in subsection (a) and the next one hundred\neighty days thereafter, subsection (a) shall not apply to the\ncollection, by the tax commission, by levy or otherwise of the amount of\nany liability pursuant to section six hundred ninety-two of this\narticle.\n