I 111th CONGRESS 1st Session H. R. 1175 IN THE HOUSE OF REPRESENTATIVES February 25, 2009 Mr. Foster introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend title 10, United States Code, to authorize taxpayers to designate a portion of their income tax payments to a National Military Family Relief Fund to be used by the Secretary of Defense to assist the families of members of the Armed Forces who are serving in, or have served in, Iraq or Afghanistan.

1.

National Military Family Relief Fund to assist families of members of the Armed Forces who are serving in, or have served in, Iraq or Afghanistan

(a)

In general

Subchapter I of chapter 88 of title 10, United States Code, is amended by inserting after section 1781b the following new section:

1781c.

National Military Family Relief Fund to assist military families

(a)

Establishment

There is established in the Treasury a fund, which shall be known as the National Military Family Relief Fund (in this section referred to as the Fund). (b)

Credits to fund

There are hereby appropriated to the Fund in each fiscal year an amount equal to the amounts designated for deposit in the Fund under section 6098 of the Internal Revenue Code of 1986 in the taxable year ending in that fiscal year. (c)

Use of Fund

The Secretary of Defense shall use amounts in the Fund, without further specific authorization in law, to make grants to members of the Armed Forces who are serving in, or have served in, Iraq or Afghanistan to assist the families of such members. (d)

Grant criteria

The Secretary of Defense shall prescribe the criteria under which grant applications will be solicited and grants will be made and the purposes for which grants may be used.

. (b)

Clerical amendment

The table of sections at the beginning of such subchapter is amended by inserting after the item relating to section 1781b the following new item: 1781c. National Military Family Relief Fund to assist military families. .

2.

Designation of income tax payments to National Military Family Relief Fund

(a)

In general

Subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to information and returns) is amended by adding at the end the following new part: IX

Designation of income tax payments to National Military Family Relief Fund

Sec. 6098. Designation to National Military Family Relief Fund.

6098.

Designation to National Military Family Relief Fund

(a)

In general

Every individual (other than a nonresident alien), with respect to each taxpayer’s return for the taxable year of the tax imposed by chapter 1— (1)whose adjusted income tax liability for the taxable year is $1 or more may designate that a specified portion (not less than $1) of any overpayment of tax shall be paid over to, and (2)in addition to any payment of income tax liability, may make a contribution of an additional amount which shall be paid over to, the National Military Family Relief Fund, established under section 1781c of title 10, United States Code.(b)

Adjusted income tax liability

For purposes of subsection (a), the term adjusted income tax liability means, for any individual for any taxable year, the excess (if any) of— (1)the income tax liability (as defined in section 6096(b)) of the individual for the taxable year, over (2)any amount designated by the individual (and, in the case of a joint return, any amount designated by the individual’s spouse) under section 6096(a) for such taxable year. (c)

Manner and time of designation and contribution

A designation and contribution under subsection (a) may be made with respect to any taxable year— (1)at the time of filing the return of the tax imposed by chapter 1 for such taxable year, or (2)at any other time (after the time of filing the return of the tax imposed by chapter 1 for such taxable year) specified in regulations prescribed by the Secretary. Such designation shall be made in such manner as the Secretary prescribes by regulations except that, if such designation is made at the time of filing the return of the tax imposed by chapter 1 for such taxable year, such designation shall be made either on the first page of the return or on the page bearing the taxpayer’s signature.(d)

Overpayments treated as refunded

For purposes of this title, any portion of an overpayment of tax designated under subsection (a) shall be treated as— (1)being refunded to the taxpayer as of the last date prescribed for filing the return of tax imposed by chapter 1 (determined without regard to extensions) or, if later, the date the return is filed, and (2)a contribution made by such taxpayer on such date to the United States.

. (b)

Clerical amendment

The table of parts for subchapter A of chapter 61 of such Code is amended by adding at the end the following new item: Part IX—Designation of income tax payments to National Military Family Relief Fund Sec. 6098. Designation to National Military Family Relief Fund. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.