[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2971 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2971

  To permit the recovery of certain overpayments of tax on disability 
           payments received on severance from the military.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1993

Mr. McCloskey (for himself, Mr. Jacobs, and Mr. Darden) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To permit the recovery of certain overpayments of tax on disability 
           payments received on severance from the military.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF CERTAIN DISABILITY SEVERANCE PAYMENTS.

    (a) Waiver of Statute of Limitations.--If--
            (1) an individual included nontaxable military disability 
        severance payments in gross income for any taxable year, and
             (2) on the date of the enactment of this Act or at any 
        time during the 1-year period beginning on such date of 
        enactment, credit or refund of any overpayment attributable to 
        such inclusion is barred by any law or rule of law (including 
        res judicata),
credit or refund of such overpayment shall, nevertheless, be allowed or 
made if claim therefor is filed before the date 1 year after the date 
of the enactment of this Act.
    (b) Special Rules.--The provisions of subsection (a) shall also 
permit the Secretary of the Treasury or his delegate to credit or 
refund any overpayment referred to in subsection (a) during the 1-year 
period referred to in subsection (a) without any claim being filed 
therefor. To the maximum extent possible, the Secretary shall allow or 
make such credits or refunds without waiting for claims to be filed.
    (c) Nontaxable Military Disability Severance Payment.--For purposes 
of this section, the term ``nontaxable military disability severance 
payment'' means any lump-sum severance payment which--
            (1) was received on account of personal injuries or 
        sickness resulting from active service in the Armed Forces of 
        the United States, and
            (2) is excludable from gross income under section 104 of 
        the Internal Revenue Code of 1986.

                                 <all>