Spratt Helps to Pass Bill to Compensate More Disabled Military Retirees

U.S. Rep. John Spratt (D-SC) today helped to pass a bill to compensate more disabled military retires. The “Disabled Military Retiree Act” (HR 2990) would allow more service members who have been retired for severe disability to receive both military retirement benefits and VA disability compensation without an offset. As chairman of the Budget Committee, Spratt worked to find ways to pay for the bill within the budget, assuring passage in the House. The vote was 404 to 0.

“Our veterans and their families have sacrificed greatly,” said Spratt. “This small step will give them full access to the benefits they deserve, without adding to the deficit.”

Spratt said the bill covers more “Chapter 61” retirees — those forced by their disabilities to retire before they could complete 20 years of service and could earn military retirement benefits based on the longevity of their service. They currently receive only military benefits that are offset by their VA disability compensation.

To qualify to receive both without an offset, service members must have been medically retired from the military and have been rated either 100 percent disabled or 90 percent disabled. The period of eligibility would begin on January 1, 2010 and end on September 30, 2010.

Spratt said the bill is a temporary fix but that Congress is working to find a permanent solution to the compensation problem.

IRS Offers Tax Credit Guidance to Businesses Hiring Unemployed Veterans and Certain Youth

Businesses planning to claim the newly-expanded work opportunity tax credit (WOTC) for eligible unemployed veterans and unskilled younger workers hired during the first part of 2009 have until Aug. 17 to request the certification required for these workers, according to the Internal Revenue Service.

Newly-revised Form 8850, now available on IRS.gov, is used by employers to request certification from their state workforce agency. The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and “disconnected youth” to the list of groups covered by the credit. Though eligible unemployed veterans and disconnected youth who begin work anytime during 2009 or 2010 may qualify a business for the credit, certification by the state workforce agency is required.

In general, an unemployed veteran is a person discharged or released from the military during the five years preceding the hiring date who received unemployment benefits for at least four weeks during the one-year period ending on the hiring date. A “disconnected youth” is a person age 16 to 24 on the hiring date who has not been regularly employed or attending school and who meets other requirements.

The WOTC offers tax savings to businesses that hire workers belonging to any of 12 targeted groups, including unemployed veterans and disconnected youth. The other 10 include people ages 18 to 39 living in designated communities in 43 states and the District of Columbia, Hurricane Katrina employees, recipients of various types of public assistance, and certain veterans, summer youth workers and ex-felons. The instructions for Form 8850 detail the requirements for each of these groups.

The certification requirement applies to all groups of workers except employees who were Hurricane Katrina victims. Normally, a business must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But under a special rule, businesses have until Aug. 17, 2009, to file this form for unemployed veterans and disconnected youth who begin work on or after Jan. 1, 2009 and before July 17, 2009. Notice 2009-28, posted today on IRS.gov, and the instructions for Form 8850 provide details on this special rule.

BETHUNE MAN GUILTY OF BENEFITS THEFT

nited States Attorney W. Walter Wilkins stated that Jack C. Hammonds, age 59, of Bethune, South Carolina, pled guilty in federal court to theft of government funds from the Department of Veterans Affairs and Social Security Administration. United States District Judge Terry L. Wooten accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the guilty plea hearing established that Hammonds received $13,755.00 in disability benefits from the Department of Veteran’s Affairs and $12,093.00 from the Social Security Administration between February 2007 and April 2008. Hammonds obtained the benefits by falsely claiming he was physically unable to work, although he was working for USA Recycling in Darlington on a full time basis. Hammonds also falsely claimed to be separated from his wife, so her income would not disqualify hm for disability benefits.

Mr. Wilkins stated the maximum penalty Hammonds can receive is a fine of $250,000.00 and imprisonment for 10 years.

The case was investigated by agents of the Social Security Administration and Department of Veterans Affairs Office of the Inspector General . Assistant United States Attorney William E. Day, II, of the Florence office handled the case.

Legion Family Raising Funds for Wounded Warriors

The American Legion, the American Legion Auxiliary and the Sons of the American Legion have launched a fundraising effort to purchase comfort items for hospitalized troops recovering in U.S. military and VA medical centers around the world.

“The government does a good job of providing the essentials,” said American Legion National Commander David K. Rehbein. “We want to be able to provide items that usually don’t appear in the budget, such as personal sweat suits, I-Pods, DVDs and other comfort items. The American Legion family is challenging its members and all caring Americans to raise $50,000 by the holidays so we can brighten the season for those who have given us so much.”

The project is called Operation Comfort Warriors. Donors can make online contributions by visiting www.legion.org/ocw or by sending a check to Operation Comfort Warriors, P.O. Box 1055, Indianapolis, IN 46206. Administrative and promotional costs for Operation Comfort Warriors are paid by The American Legion, allowing all of the donations to be spent directly on the troops.