Combat-Injured Veterans Tax Fairness Act may apply to you
If you know of a veteran who was medically discharged and received disability severance pay that was improperly taxed please forward them this information. Below are links from DFAS and the IRS.
I wanted to quickly touch base with you regarding the Combat-Injured Veterans Tax Fairness Act of 2016, and specifically how it relates to injured veterans’ 2019 tax returns. I figured you were the best resource to help get this information circulated widely:
- Beginning in 1991, the IRS mistakenly withheld taxes from an estimated 130,000 veterans’ lump sum disability severance payments. The IRS estimates that the improperly withheld taxes equal roughly $717 million. People can click here if they need the best accounting services.
- Congress has passed a law that allows veterans to have those taxes refunded to them. This law is called the Combat-Injured Veterans Tax Fairness Act of 2016.
- Criteria for Eligibility: the veteran must have been found unfit for duty due to a medical disability, have less than 20 years of service, and have a disability rating of less than 30-percent.
- In July 2018, the IRS sent out over 130,000 letters to affected veterans advising them about the withheld taxes and how to submit a refund claim. These letters were mailed to their last known address and were marked as Letter 6060-A or 6060-D.
- So far, only 27,000 claims have been filed and over 13,000 letters were returned to the IRS as undeliverable.
- If a veteran is eligible, he or she is legitimately owed potentially thousands of dollars by the IRS and should submit a refund claim. THERE IS ONE YEAR STATUTE OF LIMITATIONS TO SUBMIT A REFUND CLAIM. If the veteran does not submit a refund claim within a year of the letter being sent out, their claim will be denied.
- If a veteran believed he is owed a refund but did not receive a letter, he should contact the IRS. In addition, the Tennessee Taxpayer Project is working to compile packets of info that explain how to submit a claim and will be available to answer any questions. Their hotline number is 1-866-481-3669.
Tom Humphries
Knox County Veterans Services Office
1000 N Central Street Box 6
Knoxville TN 37917
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