[Congressional Record Volume 147, Number 30 (Thursday, March 8, 2001)]
[Extensions of Remarks]
[Page E326]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      CERRO GRANDE FIRE ASSISTANCE

                                 ______
                                 

                          HON. HEATHER WILSON

                             of new mexico

                    in the house of representatives

                        Thursday, March 8, 2001

  Mrs. WILSON. Mr. Speaker, last year was a difficult one for our 
country's public lands and the people and communities who live near 
them. It was dry and hot and firefighters worked long, back-breaking 
hours to extinguish flames that seemed to go on without end. My 
colleagues in this House know of the tragedies Americans experienced 
last year because of forest fires. It was a very hard year.
  But some situations were made even worse when the fires weren't 
natural disasters. Some were started by the very people we trusted to 
steward the land. The National Park Service started a fire in my home 
state of New Mexico during a particularly dry and windy week. More than 
400 people lost homes and businesses to the Cerro Grande fire, and 
hundreds of acres of tribal lands were also devastated.
  Congress acted quickly, though, and passed The Cerro Grande Fire 
Assistance Act, S. 2736. It was attached to the Military Construction 
Appropriations bill and was signed into law on July 13, 2000. This 
legislation made up to $455 million available to fire victims so they 
would be quickly compensated for their losses and could begin 
rebuilding their lives.
  Things seemed to progress well, save for a few kinks that were worked 
out. But it's tax season, and there are hundreds of people in my home 
state of New Mexico who are waiting to file their taxes because they 
need information about how to characterize federal government 
compensation for the May 2000 Cerro Grande fire.
  The Federal Emergency Management Agency (FEMA) has issued and will 
continue to issue hundreds of payments in response to filed claims for 
compensation. However, there remain several unresolved questions 
regarding this compensation. As the April tax-filing deadline quickly 
approaches, taxpayers need to know what portions of the compensation 
they receive are taxable and how that will be determined. In spite of 
repeated requests from the New Mexico congressional delegation, the 
Internal Revenue Service (IRS) has still not issued a written decision 
resolving these questions. These Americans deserve answers now.
  The Internal Revenue Service is not playing fair. Although very clear 
about its tax filing deadlines and penalties for noncompliance, the IRS 
is not extending the same courtesy it requires. How can taxpayers meet 
deadlines when they lack information the IRS must provide?
  The federal government started this fire and must continue to take 
responsibility for it. This disaster never should have happened. I am 
committed to doing everything I can to ensure that the federal 
government moves quickly, makes the necessary decisions, and allows the 
victims of this horrendous fire to rebuild their lives.

                          ____________________