II 111th CONGRESS 1st Session S. 825 IN THE SENATE OF THE UNITED STATES April 2, 2009 Mrs. Lincoln (for herself and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to restore, increase, and make permanent the exclusion from gross income for amounts received under qualified group legal services plans.

1.

Short title

This Act may be cited as the Legal Services Benefit Act of 2009.

2.

Exclusion for amounts received under qualified group legal services plans restored, increased, and made permanent

(a)

Increase of exclusion

Subsection (a) of section 120 of the Internal Revenue Code of 1986 (relating to amounts received under qualified group legal services plans) is amended by striking the last sentence. (b)

Restoration and permanence of exclusion

Section 120 of the Internal Revenue Code of 1986 (relating to amounts received under qualified group legal services plans) is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.