Armed Forces Tax Fairness Act of 2003

Armed Forces Tax Fairness Act of 2003 - Amends the Internal Revenue Code to establish special tax provisions applicable to the uniformed services and the Foreign Service, including an extension of time to exclude gain from the sale of a principal residence, exclusion from income of certain death gratuity benefits, extending combat zone filing rules to contingency operations, excluding certain dependent care assistance from income, and the deduction overnight travel expenses for National Guard and Reserve members.

Suspends the tax-exempt status of a designated terrorist organization.

Establishes IRS service user fee authority through September 30, 2013.

Revises IRC expatriation tax provisions.