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IRS Announces Refunds and Credits for Some Veterans

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By Amanda Richter

On July 11, 2018, the IRS announced in IR-2018-148 that certain veterans who received disability severance payments after January 17, 1991, and included that income on their returns, may claim a credit or refund of the overpayment. This announcement is a result of the Combat-Injured Veterans Tax Fairness Act that was signed by President Obama in 2016 to keep the Department of Defense (DOD) from improperly taxing veteran’s disability severance payments.

Most veterans who received a one-time lump-sum disability severance payment when they separated from their military service will receive a letter from the DOD with information on how to claim tax refunds to which they are entitled. The DOD estimates that over 133,000 veterans may be eligible for a refund of Federal taxes under the Combat Injured Veterans Tax Fairness Act.

To claim the credit or refund of the overpayment attributable to the disability severance payment, veterans will need to file Form 1040-X, Amended U.S. Individual Income Tax Return. The IRS is allowing veterans to submit a claim based on the actual amount of their disability severance payment or a simplified method can be used. The simplified method is a standard refund for a set period of years. Veterans who choose to use the standard refund (simplified method) may find this to be the easier way to claim a refund, because you do not need to access the original tax return that was filed from the year of their lump-sum disability severance payment. Below are the standard refund amounts and the years to which it applies:

$1,750 for tax years 1991-2005

$2,400 for tax years 2006-2010

$3,200 for tax years 2011-2016

As with most tax refunds, there is a statute of limitations to claim the credit/refunds. The law provides veterans making these claims have the normal limitations period for claiming a refund or one year from the date of their letter from the DOD, whichever expires later. This is especially important, since some of the claims for refunds are on taxes paid as far back as 1991.

If this applies to you or someone you know, please contact Hook Law Center if you would like assistance with completing Form 1040-X to claim the refund.

Kit KatAsk Kit Kat – Dogo Argentino Rescued

Hook Law Center: Kit Kat, what can you tell us about the Dogo Argentino breed and how one was rescued recently in Alabama?

Kit Kat: Well, this is interesting. I had never heard of the Dogo Argentino breed before reading about how one was rescued in January 2015 from a puppy mill in Alabama. The dog in question, named Ann, was bred repeatedly for puppies, only to have them yanked from her. Along with Ann, there were more than 60 dogs rescued from this living nightmare of malnourishment and mistreatment. At last justice prevailed, and the owner of the farm was convicted in February 2018 of six felony counts of animal cruelty and one misdemeanor.

After Ann was seized from her delinquent owner, she and others from the Alabama property soon were placed by the Humane Society of the United States (HSUS) in a shelter belonging to HSUS in Ann Arbor, Michigan. There they were rehabilitated and received therapy from canine behaviorists. One of Ann’s favorite canine friends named Ivan was adopted quickly after his arrival. Ann, however, lingered for almost a year and a half. Her adoption day did arrive eventually. She was adopted by Jane Harlow, who was visiting the shelter for a special event. It has been a happy arrangement for both. Ann is getting up to her ideal weight, and she has the run of large, fenced yard. To top it off, she even has play dates with Ivan, who lives nearby.

The Dogo Argentino is a relatively new breed. According to Wikipedia, “The Dogo Argentino, is a large, white, muscular dog that was developed in Argentina primarily for the purpose of big-game hunting, including wild boar; the breeder, Antonio Nores Martínez, also wanted a dog that would exhibit steadfast bravery and willingly protect its human companion.” The breed was first introduced in 1928 from the Córdoba Fighting Dog and other breeds such as the Great Dane. Although the Dogo Argentino is banned or has ownership restrictions in some countries, Ann is a wonderful example of the breed. She displays no aggressive tendencies, and has been living uneventfully with Ms. Harlow for over a year at this point. Thanks to HSUS for their timely intervention! (Kelly L. Williams, “To the rescue—case history: Ann,” All Animals, May/June 2018, p. 6-7 / Wikipedia)

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Posted on Monday, July 23rd, 2018. Filed under Senior Law News.
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