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President Signs Into Law NVLSP Supported Bill to End Taxation of Veterans’ Severance Payments

NVLSP estimates 13,800 veterans were denied $78 million in severance pay when wrongfully taxed

On December 16, 2016, President Obama signed into law legislation to ensure that veterans who suffer service-ending combat-related injuries are not taxed on the severance payment they receive from the Department of Defense (DOD). The Combat-Injured Veterans Tax Fairness Act of 2016 directs DOD to identify veterans who have been separated from service for combat-related injuries and received a severance payment that was improperly taxed by the federal government. It instructs DOD to determine how much the combat-wounded veterans are owed and allow veterans who have been improperly taxed to recover the withheld amounts. [more]

Released 12/19/16 | Tags: Congressional Legislation

Bill Seeking to Recover $78 Million for 13,800 Combat Injured Veterans Passes the House

NVLSP applauds passage of legislation, Hopes Senate will consider S.2712 this session

The National Veterans Legal Services Program (NVLSP) applauds the passage of H.R. 5015, the Combat-Injured Veterans Tax Fairness Act of 2016 last night in Congress. Sponsored by Congressman David Rouzer (R-NC), the bill ensures veterans who suffered service-ending combat-related injuries are not being wrongfully taxed on their severance packages from the Department of Defense (DoD). [more]

Released 12/6/16 | Tags: Congressional Legislation

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NVLSP News Articles

New law allows injured veterans to recoup erroneous severance taxes

Released 12/19/16 at Stars & Stripes | Tags: Congressional Legislation

Thousands of veterans injured in combat could soon be able to recoup taxes erroneously collected from their disability severance pay due to a new law signed by President Barack Obama. About 13,800 veterans separated from the military due to their injuries might have been affected, the nonprofit group National Veterans Legal Service Program estimates. Due to an accounting error, as much as $78 million in taxes deducted over decades from the lump sum payments. Federal law considers the severance payments tax exempt. But the nonprofit group said the Defense Finance and Accounting Service system was automatically making deductions since 1991, meaning troops injured in conflicts spanning from the Gulf War to the wars in Iraq and Afghanistan might have been taxed thousands of dollars improperly. [more]

Combat-disabled veterans needed ‘act of Congress’ to get millions government owed

Released 12/18/16 at WTOP | Tags: Congressional Legislation

For some veterans who were shortchanged millions by the government, it took an act of Congress to finally get the money they were owed. “It literally takes an act of Congress to try to right this historic wrong that was done to them,” said Thomas Moore, a lawyer with the nonprofit National Veterans Legal Services Program. For several decades, the government knowingly and wrongfully taxed the severance packages of these veterans who suffered service-ending combat disabilities, Moore said. “We have estimated that it’s about 14,000 veterans, and the total amount taken from these veterans we’ve estimated as about $78 million,” Moore said. [more]

Gov’t Can’t Beat Nonprofit Groups’ PACER Fee Suit

Released 12/16/16 at Law360 | Tags:

A Washington, D.C., federal judge has refused to kill a proposed class action by nonprofit groups that claim PACER is too expensive, concluding Monday the users don’t have to exhaust the service’s administrative appeals because the complaint isn’t about a billing error. U.S. District Judge Ellen Segal Huvelle rejected the government’s bid to toss the suit brought by the National Veterans Legal Services Program, the National Consumer Law Center and Alliance for Justice over PACER’s fees, saying the suit addresses different issues than the ones outlined by the service’s user agreement, according to Monday’s decision. [more]

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