On May 22, 2015, the Don't Tax Our Fallen Public Safety Heroes Act became effective. The Act adds Internal Revenue Code section 104(a)(6), which provides a specific exclusion from income for amounts paid:

  • by the Department of Justice as a public safety officer disability or survivor's benefit; or
  • under a state program that provides benefits for surviving dependents of a public safety officer who has died as the direct and proximate result of a personal injury sustained in the line of duty.

Payers should not file Form 1099-MISC to report the payments. The amounts are excluded from gross income and are not subject to any information reporting requirements.