[Congressional Record Volume 152, Number 14 (Wednesday, February 8, 2006)]
[Extensions of Remarks]
[Page E119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   DISABLED VETERANS TAX FAIRNESS ACT

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                             HON. SAM FARR

                             of california

                    in the house of representatives

                      Wednesday, February 8, 2006

  Mr. FARR. Mr. Speaker, today Representative Bilirakis and I are 
introducing the Disabled Veterans Tax Fairness Act. This bipartisan 
bill serves disabled veterans who have been caught in the cross hairs 
of the bureaucracy at the Department of Veterans Affairs and an 
Internal Revenue Service statute of limitations. The Disabled Veterans 
Tax Fairness Act would add an exception to the IRS statute of 
limitations that would allow disabled military retirees whose 
disability claims have been pending for more than 3 years to receive 
back taxes for all the years that their claim was pending.
  This issue was brought to my attention by a constituent who had a 
disability claim pending at the VA for 8 years. After he finally won 
his disability claim and was awarded retroactive disability 
compensation, he was denied 5 years of back taxes due to the IRS 3-year 
statute of limitations. This veteran and perhaps thousands of others 
are being penalized through no fault of their own.
  To determine the scope of the problem, I requested a report in the 
FY06 TT/HUD appropriations bill directing the IRS to tell the committee 
how many disabled military retirees have been and will be penalized by 
this IRS statute of limitations. I look forward to the results in mid-
March.
  Those who have dedicated their lives to the security of this country 
should not be penalized by the IRS for bureaucratic inefficiency by the 
VA disability claims process. This bill is supported by the Military 
Officers Association of America and The Military Coalition. Please join 
Representative Bilirakis and me as a cosponsor of H.R. 4727.

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