[Congressional Record Volume 155, Number 82 (Wednesday, June 3, 2009)]
[Senate]
[Pages S6032-S6033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID:
  S. 1166. A bill to amend the Internal Revenue Code of 1986 to allow 
taxpayers to designate part or all of any income tax refund to support 
reservists and National Guard members; to the Committee on Finance.
  Mr. REID. Mr President, I rise today to introduce legislation to help 
reduce the financial burden placed on our Reserve and National Guard 
troops and their families. More than a quarter of a million have 
deployed in support of operations in Iraq and Afghanistan, and we must 
make it a priority to honor their service at home.
  Nevada alone has more than three thousand Guards men and women, and a 
thousand Reservists--many of whom work full-time jobs when they are not 
on active duty. Since September 11th, our National Guard and Reserve 
Troops have significantly increased their deployments beyond what had 
been forecasted, advertised or expected. They have continued their 
engagements around the globe while still responding to historic 
callouts in support of disaster relief.
  In our Democracy, we enjoy the luxury of an all-volunteer military 
force. Yet in volunteering, many of our Citizen-Soldiers are 
financially penalized for their service. Far too frequently, when a 
Service Member is mobilized in service to their state or our nation, 
they suffer a financial burden in the reduced pay received while 
mobilized. A National Guard medic might earn much less while he or she 
is deployed in Afghanistan than they did working a full-time job in a 
Nevada hospital. This legislation gives American taxpayers the option 
of contributing money to help our military families to make up for 
wages lost during a deployment.
  The bill I am introducing today allows Americans to designate all or 
a portion of their income tax refunds to the Reserve Income Replacement 
Program. The Program is a compensation that must be paid to all 
eligible Service Members when they incur a loss in monthly income as a 
result of a mobilization. The funds that volunteers donate will be 
transferred from the Treasury Department to this program, which was 
developed specifically to provide payments to eligible members of the 
National Guard and Reserve who are involuntary serving on active-duty 
and who are experiencing a monthly active-duty income differential of 
more than $50. In 2007, the IRS issued 106 million refunds that totaled 
$246 billion with the average refund coming in at $2,342. Even a small 
percentage of this amount could make a significant difference in the 
lives of these reservist and National Guard families.
  The financial stress of deployments during a recession has placed 
enormous pressures on our National Guard and Reserve Service Members 
and their families. Many of these members are returning from war only 
to find their businesses facing extreme difficulty. This bill would not 
only assist the Guard with monetary resources, but it would also 
rightfully focus more attention on the financial struggles that our 
brave and dedicated citizen Soldiers and Airmen undertake in defense of 
our country. With this legislation, we can show them that their service 
is not taken for granted.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1166

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Voluntary Support for 
     Reservists and National Guard Members Act''.

     SEC. 2. DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS AND 
                   NATIONAL GUARD MEMBERS.

       (a) Designation.--Subchapter A of chapter 61 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new part:

 ``PART IX--DESIGNATION OF OVERPAYMENTS TO RESERVE INCOME REPLACEMENT 
                                PROGRAM

``Sec. 6097. Designation.

[[Page S6033]]

     ``SEC. 6097. DESIGNATION.

       ``(a) In General.--In the case of an individual, with 
     respect to each taxpayer's return for the taxable year of the 
     tax imposed by chapter 1, such taxpayer may designate that a 
     specified portion (not less than $5) of any overpayment of 
     tax for such taxable year be paid over to the Reserve Income 
     Replacement Program (RIRP) under section 910 of title 37, 
     United States Code.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year 
     only at the time of filing the return of the tax imposed by 
     chapter 1 for such taxable year. Such designation shall be 
     made in such manner as the Secretary prescribes by 
     regulations except that such designation shall be made either 
     on the first page of the return or on the page bearing the 
     taxpayer's signature.
       ``(c) 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) Transfers to Reserve Income Replacement Program.--The 
     Secretary of the Treasury shall, from time to time, transfer 
     to the Reserve Income Replacement Program (RIRP) under 
     section 910 of title 37, United States Code, the amounts 
     designated under section 6097 of the Internal Revenue Code of 
     1986, under regulations jointly prescribed by the Secretary 
     of the Treasury and the Secretary of Defense.
       (c) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 61 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:

 ``Part IX. Designation of Overpayments to Reserve Income Replacement 
                               Program''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
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