[Congressional Record Volume 145, Number 43 (Thursday, March 18, 1999)]
[Extensions of Remarks]
[Page E495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 FAIRNESS FOR FOSTER CARE FAMILIES ACT

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                             HON. RON LEWIS

                              of kentucky

                    in the house of representatives

                        Thursday, March 18, 1999

  Mr. LEWIS of Kentucky. Mr. Speaker, today I am introducing a bill 
that ensures that all foster care families are treated fairly under the 
Tax Code.
  The Fairness for Foster Care Families Act simplifies the current 
rules for foster care payments and recognizes the increasing role that 
charitable tax exempt agencies and private for-profit agencies play in 
the placement of foster care children and adults.
  In 1983, Congress amended the Internal Revenue Code to permit certain 
foster care families to exclude from taxable income payments they 
receive to cover the additional expenses incurred for caring for the 
individual. Unfortunately, the exclusion depended on a complicated 
analysis of three factors: the age of the foster care individual, the 
type of foster care placement agency and the source of the foster care 
payment.
  Congress revisited the tax treatment of foster care payments in 1986. 
Although the process was simplified to an extent, some families were 
still left out. Those families could only receive a tax deduction if 
they maintained detailed expense records to support such deductions.
  Under the Fairness for Foster Care Families Act, foster care 
providers would avoid this burdensome record keeping process. This bill 
guarantees that the payment is tax-free regardless of the age of the 
foster care individual or the type of agency that places the individual 
provided that the agency is licensed and certified by the State.
  I hope my colleagues will join me in supporting this legislation.

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