Both the U.S. House and Senate unanimously approved legislation to refund withholding taxes improperly taken from severance pay made to wounded military veterans.
The Combat-Injured Veterans Fairness Act of 2016 requires the Defense Department to identify combat-injured veterans that received severance payments after January 17, 1991, from which withholding tax was deducted. The Defense Department is also required to notify each veteran of the amount of withholding tax improperly deducted from severance payments along with instructions for filing amended tax returns.
The Defense Finance & Accounting Service stated that an error with its payment system improperly withheld taxes from 14,000 veterans during this time. If signed by the President, the proposed legislation will become law. Do you know a combat-injured veteran that received severance payments from the Defense Department related to that injury? Those individuals may be entitled to refunds.
Are you having trouble with the IRS? Get legal representation from Chicago tax lawyer Patrick T. Sheehan & Associates. Contact us today!