H.R. 3768: the Katrina Emergency Tax Relief Act of 2005 Page: 1 of 6
This report is part of the collection entitled: Congressional Research Service Reports and was provided to UNT Digital Library by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
CRS Report for CongIress
Received through the CRS Webof the cancellation is ordinarily included in the income of the taxpayer receiving the
benefit of the discharge.' This rule is based on the idea that the taxpayer has been
enriched from not having to pay a debt that he or she was legally obligated to pay. There
are currently several exceptions to the general rule that a cancelled debt is included in
taxable income in the year of discharge. For example, no amount of the discharge is
included in income if the cancellation is intended to be a gift or is from the discharge of
student loans for the performance of qualifying services.2 There are also certain situations
in which the taxpayer may defer taxation, with the possibility of permanent exclusion, on
income from the discharge of indebtedness, such as if discharge occurs when the debtor
is in title 11 bankruptcy proceedings or insolvent.3
1 IRC 61(a)(12).
2 IRC 102 and 108.
3 IRC 108(a).Congressional Research Service x The Library of Congress
Order Code RS22269
September 19, 2005
CRS Report for Congress
Received through the CRS Web
H.R. 3768: the Katrina Emergency Tax Relief
Act of 2005
Erika Lunder
Legislative Attorney
American Law Division
Summary
On September 15, 2005, the House and Senate passed different versions of a bill
that contains tax provisions intended to assist the victims of Hurricane Katrina. H.R.
3768, the Katrina Emergency Tax Relief Act of 2005, was passed by voice vote in the
House, while the Senate passed an amended version by unanimous consent. This report
compares the House and Senate versions of the bill. It will be updated as events
warrant.
This report compares the provisions in H.R. 3768, the Katrina Emergency Tax Relief
Act of 2005, as passed by the House with those in the amended version of the bill that was
passed by the Senate. The version passed by the House will be referred to as H.R. 3768,
while the version passed by the Senate will be referred to as S.Amdt. 1728. The
provisions are grouped by topic and not discussed in the section order found in the House
or Senate version of the bill.
Discharge of indebtedness. When all or part of a debt is forgiven, the amount
Upcoming Pages
Here’s what’s next.
Search Inside
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
Lunder, Erika. H.R. 3768: the Katrina Emergency Tax Relief Act of 2005, report, September 19, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metacrs7562/m1/1/?q=%22Hurricanes%22: accessed May 1, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.