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Attention Veterans: IRS May Owe You Money

More than 130,000 U.S. veterans who were released from service due to injuries sustained in combat are due substantial federal income tax refunds because of a Department of Defense error that stretched on for decades. The veterans who were wrongfully taxed could be eligible to receive a refund for taxes they paid on disability compensation. [more]

Released 7/26/18 | Tags: Congressional Legislation

Monyei named staff ombudsman at Clemson University

Allison Monyei, most recently an associate ombudsman at the Food and Drug Administration (FDA) Center for Tobacco Products, has been named the new staff ombudsman at Clemson University. She worked as a staff attorney for the National Veterans Legal Services Program from 2010–14, advocating on behalf of veterans and their families. [more]

Released 7/25/18 | Tags: Staff

Tips for the 130,000+ combat-injured veterans seeking refunds of improperly withheld taxes

More than 130,000 combat-injured veterans had their lump-sum severance pay improperly taxed by the government due to a computer glitch when they left the military from 1991-2016. On July 9, 2018, the Department of Defense began mailing letters to notify affected veterans, and on July 11, 2018, the Internal Revenue Service (IRS) issued guidance to assist veterans. [more]

Released 7/20/18 | Tags: Congressional Legislation

Uncle Sam Owes YOU: Computer Glitch Caused Undue IRS Taxation

Between 1991 and 2016, the Department of Defense had an undetected glitch that may have cost you thousands of dollars in IRS taxes. It made disability severance payments subject to income taxes, which they’re not supposed to be. If you were injured in combat and have ever gotten a disability severance package, this means that you are likely entitled to a tax refund of $1,750. The National Veterans Legal Service Program (NVLSP) estimates that some vets may be owed upwards of $10,000. [more]

Released 7/19/18 | Tags: Congressional Legislation

Congress Shocked by Number of Disabled Vets Due Refunds

Nineteen months ago, as Congress considered the Combat-Injured Veterans Tax Fairness Act of 2016, lawmakers shepherding the bill (HR 5015) toward enactment advised that perhaps 13,800 veterans had had taxes mistakenly withheld from lump-sum disability separation payments and would get refunds. The average amount of taxes withheld was estimated at $5,500, proponents said, and the total cost to the U. S. Treasury would be less than $78 million. My, my, were those projections off the mark. [more]

Released 7/19/18 | Tags: Congressional Legislation

Boozman, Warner Encourage Certain Combat-Injured Veterans to File with IRS to Recover Money

The Internal Revenue Service (IRS) is advising veterans who have been separated from service for combat-related injuries and received a severance payment that was improperly taxed to take advantage of the relief offered to them by the Combat-Injured Veterans Tax Fairness Act (P.L. 114-292), a law based off a bill authored by U.S. Senators John Boozman (R-AR) and Mark Warner (D-VA). Under federal law, veterans who suffer combat-related injuries and who are separated from the military are not supposed to be taxed on the one-time lump sum disability severance payment they receive from the Department of Defense (DoD). However, for years DoD improperly withheld taxes on these payments from thousands of qualifying veterans, who were typically unaware that their benefits were being improperly reduced. The Combat-Injured Veterans Tax Fairness Act rights that wrong, but affected veterans only have a short window in which to seek restoration. The IRS is advising qualifying veterans to file Form 1040X, Amended U.S. Individual Income Tax Return, to claim a credit or refund of the overpayment attributable to the disability severance payment. [more]

Released 7/17/18 | Tags: Congressional Legislation

Tips to Help Combat-Injured Veterans Obtain Tax Refunds

More than 130,000 combat-injured veterans had their lump sum severance pay improperly taxed by the government due to a computer glitch when they left the military from 1991-2016. On July 9, 2018, the Department of Defense began mailing letters to notify affected veterans, and on July 11, 2018, the Internal Revenue Service (IRS) issued guidance to assist veterans. [more]

Released 7/17/18 | Tags: Congressional Legislation

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