This bill, titled the Coast Guard Combat-Injured Tax Fairness Act, amends the Combat-Injured Veterans Tax Fairness Act of 2016. Its primary purpose is to extend the protections and benefits of the 2016 Act to members of the Coast Guard , specifically when the Coast Guard is not operating as a service within the Department of the Navy. This ensures that Coast Guard veterans who sustained combat-related injuries and received severance payments are eligible for the restoration of any amounts improperly withheld for tax purposes. The legislation mandates that the Secretary of Homeland Security and, for historical periods, the Secretary of Transportation , assume responsibilities similar to those of the Secretary of Defense under the original Act. These responsibilities include identifying and reporting all improperly withheld amounts from Coast Guard veterans' severance payments within one year of the bill's enactment. Furthermore, the bill requires the Secretary of Homeland Security to immediately implement measures to prevent any future improper tax withholdings from such payments for Coast Guard personnel.
This bill, titled the Coast Guard Combat-Injured Tax Fairness Act, amends the Combat-Injured Veterans Tax Fairness Act of 2016. Its primary purpose is to extend the protections and benefits of the 2016 Act to members of the Coast Guard , specifically when the Coast Guard is not operating as a service within the Department of the Navy. This ensures that Coast Guard veterans who sustained combat-related injuries and received severance payments are eligible for the restoration of any amounts improperly withheld for tax purposes. The legislation mandates that the Secretary of Homeland Security and, for historical periods, the Secretary of Transportation , assume responsibilities similar to those of the Secretary of Defense under the original Act. These responsibilities include identifying and reporting all improperly withheld amounts from Coast Guard veterans' severance payments within one year of the bill's enactment. Furthermore, the bill requires the Secretary of Homeland Security to immediately implement measures to prevent any future improper tax withholdings from such payments for Coast Guard personnel.