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Testimony: Veterans Appeals Improvement and Modernization Act of 2017

Testimony of NVLSP

The Veterans Appeals Improvement and Modernization Act provide a far-reaching restructuring of the VA administrative appeals process. It contains many positive features that are likely to decrease appeal times, while providing claimants with various options for pursuing their appeals. As with any substantial change to a complex system, there will clearly be effects that we cannot now predict. But given that the current appeals process is not functioning well, we have ultimately concluded that the proposed legislation - even without being able to predict all of its effects - is a necessary step. However, NVLSP opposes some of the substantive changes to the draft bill that VA is seeking under the guise of "technical amendments." [more]

Released 4/28/17 | Tags: Board of Veterans Appeals, Congressional Legislation

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

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NVLSP News Articles

DoD fix to repay improperly withheld taxes from some veterans’ disability payments

Released 1/13/17 at Federal News Radio | Tags: Congressional Legislation

Veterans will no longer be unlawfully taxed thanks to new legislation signed into law by President Barack Obama in mid-December. Under the Combat-Injured Veterans Tax Fairness Act of 2016 , the Defense Department will restore tax dollars improperly withheld from severance payments to veterans with combat-related injuries or for other purposes. [more]

New Law Allows Injured Vets To Get Refund On Taxes They Were Never Meant To Pay

Released 12/20/16 at Task & Purpose | 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. [more]

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