Released 7/16/18 at Stars & Stripes | Tags: Congressional Legislation
The Defense Department has identified more than 130,000 veterans released from military service following injuries who may be owed more than $1,700 each in tax refunds after the Pentagon incorrectly withheld money from their disability pay, officials said Monday. Letters were sent this month by the IRS notifying 130,062 veterans that the federal agency might have improperly collected taxes on their lump sum disability severance pay issued between 1991 and 2016, said Army Lt. Col. David Dulaney, the executive director of the Armed Forces Tax Council. Veterans who were sent the letter, which should arrive in the coming weeks, will have one year from the letter’s date to file their amended tax refund claim.