S.Amdt. 782

1. Adds SEC. ___. SPECIAL PERIOD OF LIMITATION WHEN UNIFORMED SERVICES RETIRED PAY IS REDUCED AS A RESULT OF AWARD OF DISABILITY COMPENSATION at the end of title V

   Adds a section

   In H.R. 1591 · Placed on Calendar Senate

   (b) Submission of Individual Audits.--The head of each Federal agency or department shall provide, within 14 days after a request in writing by the chairman or ranking member of any of the committees described in subsection (a)(2), a full and unredacted copy of any audit or other report described in subsection (a)(1).

   Inserted: SEC. ___. SPECIAL PERIOD OF LIMITATION WHEN UNIFORMED SERVICES RETIRED PAY IS REDUCED AS A RESULT OF AWARD OF DISABILITY COMPENSATION.

   Inserted: (a) In General.--Subsection (d) of section 6511 (relating to special rules applicable to income taxes) is amended by adding at the end the following new paragraph:

   Inserted: "(8) Special rules when uniformed services retired pay is reduced as a result of award of disability compensation.--

   Inserted: "(A) Period of limitation on filing claim.--If the claim for credit or refund relates to an overpayment of tax imposed by subtitle A on account of--

   Inserted: "(i) the reduction of uniformed services retired pay computed under section 1406 or 1407 of title 10, United States Code, or

   Inserted: "(ii) the waiver of such pay under section 5305 of title 38 of such Code, as a result of an award of compensation under title 38 of such Code pursuant to a determination by the Secretary of Veterans Affairs, the 3-year period of limitation prescribed in subsection (a) shall be extended, for purposes of permitting a credit or refund based upon the amount of such reduction or waiver, until the end of the 1-year period beginning on the date of such determination.

   Inserted: "(B) Limitation to 5 taxable years.--Subparagraph (A) shall not apply with respect to any taxable year which began more than 5 years before the date of such determination.".

   Inserted: (b) Effective Date.--The amendment made by subsection (a) shall apply to claims for credit or refund filed after the date of the enactment of this Act.

   Inserted: (c) Transition Rules.--In the case of a determination described in paragraph (8) of section 6511(d) of the Internal Revenue Code of 1986 (as added by this section) which is made by the Secretary of Veterans Affairs after December 31, 2000, and before the date of the enactment of this Act, such paragraph--

   Inserted: (1) shall not apply with respect to any taxable year which began before January 1, 2001, and

   Inserted: (2) shall be applied by substituting "the date of the enactment of this paragraph" for "the date of such determination" in subparagraph (A) thereof.

   Inserted: (d) Penalty for Filing Erroneous Refund Claims.--

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   Inserted: (1) In general.--Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by inserting after section 6675 the following new section:

   Inserted: "SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT.

   Inserted: "(a) Civil Penalty.--If a claim for refund or credit with respect to income tax (other than a claim for a refund or credit relating to the earned income credit under section 32) is made for an excessive amount, unless it is shown that the claim for such excessive amount has a reasonable basis, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the excessive amount.

   Inserted: "(b) Excessive Amount.--For purposes of this section, the term 'excessive amount' means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year.

   Inserted: "(c) Coordination With Other Penalties.--This section shall not apply to any portion of the excessive amount of a claim for refund or credit on which a penalty is imposed under part II of subchapter A of chapter 68.".

   Inserted: (2) Conforming amendment.--The table of sections for part I of subchapter B of chapter 68 is amended by inserting after the item relating to section 6675 the following new item:

   Inserted: "Sec. 6676. Erroneous claim for refund or credit.".

   Inserted: (3) Effective date.--The amendments made by this subsection shall apply to any return filed on or after January 1, 2008.

   Original wording

   At the end of title V, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed