[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 973 Introduced in House (IH)]

  1st Session
                                H. R. 973

To amend the Internal Revenue Code of 1986 to provide that the statute 
 of limitations shall not bar a claim for credit or refund based on a 
    retroactive determination of an entitlement to receive military 
                          disability benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 1995

Mr. Montgomery introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the statute 
 of limitations shall not bar a claim for credit or refund based on a 
    retroactive determination of an entitlement to receive military 
                          disability benefits.

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

SECTION 1. EXTENSION OF STATUTE OF LIMITATION WHERE RETROACTIVE 
              DETERMINATION OF ENTITLEMENT TO MILITARY DISABILITY 
              BENEFITS.

    (a) In General.--Subsection (d) of section 6511 of the Internal 
Revenue Code of 1986 (relating to limitations on credit or refund) is 
amended by adding at the end the following new paragraph:
            ``(7) Special period of limitation with respect to 
        retroactive determinations of entitlement to military 
        disability benefits.--If--
                    ``(A) the claim for credit or refund relates to an 
                overpayment of tax imposed by chapter 1 on account of a 
                determination of an entitlement to disability retired 
                pay under chapter 61 of title 10, United States Code, 
                or to disability compensation under chapter 11 of title 
                38 of such Code, and
                    ``(B) at any time during the 1-year period 
                beginning on the date such determination becomes final 
                with respect to amounts received in any taxable year 
                the allowance of such credit or refund for such year is 
                otherwise prevented by the operation of any law or rule 
                of law (other than section 7122 (relating to 
                compromises)),
        such credit or refund may be allowed or made if claim therefor 
        is filed not later than the close of such 1-year period.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to determinations which become final after December 
31, 1989. In no event shall a credit or refund be allowed or made by 
reason of such amendment for any taxable year ending before January 1, 
1990.
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