Today, U.S. Congressman Scott Peters (CA-52) helped pass the Combat-Injured Veterans Tax Fairness Act, which pays back heroes who had taxes wrongly deducted from benefits related to their injuries. Due to incorrect accounting by the Department of Defense, more than $78 million has been improperly withheld from veterans who received severance packages because of injuries sustained during combat. Federal courts have ruled that such benefits should not be taxed. The bill also makes void in these cases the Internal Revenue Service’s typical three-year limit on amended tax returns so affected veterans can receive all the benefits they are owed.
“As with the California National Guard crisis, the burden of bureaucratic mistakes should never fall on the shoulders of our servicemembers,” said Rep. Scott Peters. “In this case, these are veterans who sustained injuries in service to our country they will live with for the rest of their lives. This bipartisan bill ensures they receive every penny they are due. I will always fight to keep our promises to our veterans and ensure they receive the benefits they have earned through their service.”