Sec. 3. RESTORATION OF AMOUNTS IMPROPERLY WITHHELD FOR TAX PURPOSES FROM SEVERANCE PAYMENTS TO VETERANS WITH COMBAT-RELATED INJURIES

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## SEC. 3 RESTORATION OF AMOUNTS IMPROPERLY WITHHELD FOR TAX PURPOSES FROM SEVERANCE PAYMENTS TO VETERANS WITH COMBAT-RELATED INJURIES ###

(a)In General Not later than 1 year after the date of the enactment of this Act, the Secretary of Defense shall— ####

(1)identify— #####

(A)the severance payments— ######

(i)that the Secretary paid after January 17, 1991; ######

(ii)that the Secretary computed under section 1212 of title 10, United States Code; ######

(iii)that were not considered gross income pursuant to section 104(a)(4) of the Internal Revenue Code of 1986; and ######

(iv)from which the Secretary withheld amounts for tax purposes; and #####

(B)the individuals to whom such severance payments were made; and ####

(2)with respect to each person identified under paragraph (1)(B), provide— #####

(A)notice of— ######

(i)the amount of severance payments in paragraph (1)(A) which were improperly withheld for tax purposes; and ######

(ii)such other information determined to be necessary by the Secretary of the Treasury to carry out the purposes of this section; and #####

(B)instructions for filing amended tax returns to recover the amounts improperly withheld for tax purposes. ###

(b)Extension of Limitation on Time for Credit or Refund ####

(1)Period for filing claim If a claim for credit or refund under section 6511(a) of the Internal Revenue Code of 1986 relates to a specified overpayment, the 3-year period of limitation prescribed by such subsection shall not expire before the date which is 1 year after the date the information return described in subsection (a)(2) is provided. The allowable amount of credit or refund of a specified overpayment shall be determined without regard to the amount of tax paid within the period provided in section 6511(b)(2). ####

(2)Specified overpayment For purposes of paragraph (1), the term “specified overpayment” means an overpayment attributable to a severance payment described in subsection (a)(1).