#aad? ,,congress  #b;d ,session  ,h4 ,r4
 #ejae  ,,an ,,act  ,to re/ore am\nts   
improp]ly )held = tax purposes f        
sev]ance paym5ts to individuals :o      
retir$ or sep>at$ f s]vice 9 ! ,arm$    
,=ces = combat-relat$ injuries1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,combat-,injur$ ,vet]ans   
,tax ,fairness ,act ( #bjaf4  #b4 ,f9d+s
 ,congress makes ! foll[+ f9d+s3  7#a7  
,approximately #aj1jjj to #aa1jjj       
individuals are retir$ f s]vice 9 !     
,arm$ ,=ces = m$ical reasons ea* ye>4   
7#b7 ,"s ( su* individuals are sep>at$ f
 s]vice 9 ! ,arm$ ,=ces = combat-relat$ 
injuries 7z def9$ 9 section #ajd7;b77#c7
 ( ! ,int]nal ,rev5ue ,code ( #aihf74   
7#c7 ,congress has recogniz$ ! trem5d\s 
p]sonal sacrifice ( vet]ans )           
combat-relat$ injuries by1 among o!r    
?+s1 specifically exclud+ f taxable     
income sev]ance pay receiv$ =           
combat-relat$ injuries4  7#d7 ,s9ce     
#aiia1 ! ,secret>y ( ,def5se has        
improp]ly )held taxes f sev]ance pay =  

w\nd$ vet]ans1 ?us d5y+ !m _! due       
comp5sation & a significant b5efit      
int5d$ by ,congress4  7#e7 ,_m vet]ans  
ow$ r$ress are beyond ! /atutory p]iod  
to file an am5d$ tax return because !y 7
 n or are n aw>e t taxes 7 improp]ly    
)held4  #c4 ,re/oration ( am\nts        
improp]ly )held = tax purposes f        
sev]ance paym5ts to vet]ans )           
combat-relat$ injuries  7a7 ,9 g5]al ,n 
lat] ?an #a ye> aft] ! date ( ! enactm5t
 ( ?is ,act1 ! ,secret>y ( ,def5se      
%all--  7#a7 id5tify-- 7,a7 ! sev]ance  
paym5ts--  7i7 t ! ,secret>y paid aft]  
,janu>y #ag1 #aiia2  7ii7 t ! ,secret>y 
comput$ "u section #abab ( title #aj1   
,unit$ ,/ates ,code2  7iii7 t 7 n       
consid]$ gross income pursuant to       
section #ajd7;a77#d7 ( ! ,int]nal       
,rev5ue ,code ( #aihf2 &  7iv7 f :i* !  
,secret>y )held am\nts = tax purposes2 &
  7,b7 ! individuals to :om su* sev]ance
 paym5ts 7 made2 &  7#b7 ) respect to   
ea* p]son id5tifi$ "u p>agraph          
7#a77;,b71 provide--  7,a7 notice (--   

7i7 ! am\nt ( sev]ance paym5ts 9        
p>agraph 7#a77;,a7 :i* 7 improp]ly )held
 = tax purposes2 &  7ii7 su* o!r        
in=mation det]m9$ to be necess>y by !   
,secret>y ( ! ,treasury to c>ry out !   
purposes ( ?is section2 &  7,b7         
in/ructions = fil+ am5d$ tax returns to 
recov] ! am\nts improp]ly )held = tax   
purposes4  7b7 ,ext5sion ( limitation on
 "t = cr$it or refund  7#a7 ,p]iod =    
fil+ claim ,if a claim = cr$it or refund
 "u section #feaa7;a7 ( ! ,int]nal      
,rev5ue ,code ( #aihf relates to a      
specifi$ ov]paym5t1 ! #c-ye> p]iod (    
limitation prescrib$ by su* subsection  
%all n expire be=e ! date :i* is #a ye> 
aft] ! date ! in=mation return describ$ 
9 subsection 7a77#b7 is provid$4 ,!     
all[able am\nt ( cr$it or refund ( a    
specifi$ ov]paym5t %all be det]m9$ )\t  
reg>d to ! am\nt ( tax paid )9 ! p]iod  
provid$ 9 section #feaa7;b77#b74  7#b7  
,specifi$ ov]paym5t ,= purposes (       
p>agraph 7#a71 ! t]m specifi$ ov]paym5t 
means an ov]paym5t attributable to a    

sev]ance paym5t describ$ 9 subsection   
7a77#a74  #d4 ,requirem5t t ,secret>y ( 
,def5se ensure am\nts are n )held = tax 
purposes f sev]ance paym5ts n consid]$  
gross income ,! ,secret>y ( ,def5se %all
 take su* actions z may be necess>y to  
ensure t am\nts are n )held = tax       
purposes f sev]ance paym5ts made by !   
,secret>y to individuals :5 su* paym5ts 
are n consid]$ gross income pursuant to 
section #ajd7;a77#d7 ( ! ,int]nal       
,rev5ue ,code ( #aihf4  #e4 ,report to  
,congress  7a7 ,9 g5]al ,aft] complet+ !
 id5tification requir$ by section #c7;a7
 & n lat] ?an #a ye> aft] ! date ( !    
enactm5t ( ?is ,act1 ! ,secret>y (      
,def5se %all submit to ! appropriate    
committees ( ,congress a report on !    
actions tak5 by ! ,secret>y to c>ry out 
?is ,act4  7b7 ,cont5ts ,! report       
submitt$ "u subsection 7a7 %all include 
! foll[+3 7#a7 ,! numb] ( individuals   
id5tifi$ "u section #c7;a77#a77;,b74    
7#b7 ,( all ! sev]ance paym5ts describ$ 
9 section #c7;a77#a77;,a71 ! aggregate  

am\nt t ! ,secret>y )held = tax purposes
 f su* paym5ts4  7#c7 ,a description ( !
 actions ! ,secret>y plans to take to   
c>ry out section #d4  7c7 ,appropriate  
committees ( ,congress def9$ ,9 ?is     
section1 ! t]m appropriate committees ( 
,congress means-- 7#a7 ! ,committee on  
,arm$ ,s]vices1 ! ,committee on         
,vet]ans' ,affairs1 & ! ,committee on   
,f9ance ( ! ,s5ate2 &  7#b7 ! ,committee
 on ,arm$ ,s]vices1 ! ,committee on     
,vet]ans' ,affairs1 & ! ,committee on   
,ways & ,means ( ! ,h\se (              
,repres5tatives4  ,pass$ ! ,h\se (      
,repres5tatives ,decemb] #e1            
#bjaf4;,cl]k4