Sen. Cornyn, Rep. Johnson Introduce Wounded Warrior Tax Equity Act of 2011

WASHINGTON - Thursday U.S. Senator John Cornyn (R-Texas) and U.S. Congressman Sam Johnson (3rd Dist.-Texas) introduced the Wounded Warrior Tax Equity Act of 2011, to coincide with Military Appreciation Month during the month of May. Their legislation will extend to hospitalized combat troops the same IRS collection protections that civilian taxpayers currently enjoy.

“After sacrificing so much in defense of our nation’s freedom, the least we can do for our men and women in uniform is guarantee a level playing field when dealing with the federal government. Our bill will help ensure they receive equitable treatment from the IRS,” said Sen. Cornyn, a member of the Senate Finance Committee which has jurisdiction over the IRS.

“Our brave men and women who put their lives on the line defending our cherished freedoms should not be treated worse than ordinary Americans when it comes to their taxes. Our bill rights an outrageous wrong. This is about fairness for our wounded warriors when it comes to the IRS,” said Rep. Johnson, who represents portions of Dallas and Collin Counties. A 29-year Air Force veteran and former Prisoner of War in Vietnam for nearly 7 years, Johnson serves on the tax-writing Ways and Means Committee and a Joint Committee on Taxation.

Background: Wounded Warrior Tax Equity Act of 2011 (S.993 / H.R.1871)

  • The Internal Revenue Service (IRS) generally has ten years from the date of assessment to collect a tax liability from taxpayers.
  • This ten-year collection period is suspended for combat troops and during any period, plus 180 days, they are hospitalized because of combat injuries.
  • Under current law, the IRS has more time to collect from hospitalized troops who have served in combat than it would have to collect against similarly situated civilians.
  • The legislation would treat the statutory collection period for injured troops consistent with similarly situated civilian taxpayers, protecting combat troops from an unnecessary extension of IRS collection activity if they are hospitalized.
  • This legislation is based on a recommendation made by the National Taxpayer Advocate (NTA), an independent organization within the IRS created to help taxpayers resolve problems with the IRS and recommend changes that will prevent the problems.

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