I

107TH CONGRESS

1ST SESSION H. R. 1673

To amend the Internal Revenue Code of 1986 to allow taxpayers to designate

that part or all of any income tax refund be paid over for use in

medical research conducted through the Department of Veterans Affairs.

IN THE HOUSE OF REPRESENTATIVES

MAY 2, 2001

Mr. BILIRAKIS (for himself, Mr. SMITH of New Jersey, and Mr. MORAN of

Kansas) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on

Vetrans’s Affairs, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to allow taxpayers to designate that part or all of any income tax

refund be paid over for use in medical research conducted through the Department of Veterans Affairs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Veterans Medical Re5 search Assistance Voluntary Option Act’’.
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1 SEC. 2. DESIGNATION OF INCOME TAX OVERPAYMENTS TO

2 FUND MEDICAL RESEARCH.

3 (a) GENERAL RULE.—Subchapter A of chapter 61 of

4 the Internal Revenue Code of 1986 (relating to returns

5 and records) is amended by adding at the end the fol6 lowing new part:

7 ‘‘PART IX—DESIGNATION OF IN8 COME TAX OVERPAYMENTS

9 TO FUND MEDICAL RE10 SEARCH

‘‘Sec. 6097. Designation of income tax overpayments.

11 ‘‘SEC. 6097. DESIGNATION OF INCOME TAX OVERPAYMENTS.

12 ‘‘(a) GENERAL RULE.—Every taxpayer who makes a

13 return of the tax imposed by chapter 1 for any taxable

14 year may designate that a specified portion (not less than

15 $1) of any overpayment of tax for such taxable year shall

16 be used for medical research conducted through the De17 partment of Veterans Affairs.

18 ‘‘(b) MANNER AND TIME OF DESIGNATION.—Any

19 designation under subsection (a) for any taxable year shall

20 be made—

21 ‘‘(1) at the time of filing the return of the tax

22 imposed by chapter 1 for such taxable year, and

23 ‘‘(2) in such manner as the Secretary may by

24 regulation prescribe, except that such designation
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1 shall be made either on the first page of the return

2 or on the page bearing the taxpayer’s signature.

3 ‘‘(c) TREATMENT OF AMOUNTS DESIGNATED.—For

4 purposes of this title, the amount designated by any tax5 payer under subsection (a)—

6 ‘‘(1) shall be treated as being refunded to such

7 taxpayer as of the last date prescribed for filing the

8 return of tax imposed by chapter 1 (determined

9 without regard to extensions) or, if later, the date

10 the return is filed, and

11 ‘‘(2) shall be treated as a contribution made by

12 such taxpayer on such date to the United States.’’

13 (b) CLERICAL AMENDMENT.—The table of parts for

14 subchapter A of chapter 61 of such Code is amended by

15 adding at the end thereof the following new item:

‘‘Part IX. Designation of income tax overpayments to fund medical research.’’

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to taxable years beginning after

18 December 31, 2001.

19 SEC. 3. DEPARTMENT OF VETERANS AFFAIRS MEDICAL

20 AND PROSTHETIC RESEARCH GIFT FUND.

21 Section 7303 of title 38, United States Code, is

22 amended by adding at the end the following new sub23 section:
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1 ‘‘(e)(1) There is established in the Treasury of the

2 United States an account to be known as the ‘Department

3 of Veterans Affairs Medical and Prosthetic Research Gift

4 Fund’ (in this subsection referred to as the ‘Fund’), con5 sisting of such amounts as may be transferred or credited

6 to the account under this subsection.

7 ‘‘(2) The Secretary of the Treasury shall, from time

8 to time, transfer to the Fund the amounts designated

9 under section 6097 of the Internal Revenue Code of 1986.

10 Amounts that otherwise would be appropriated for the De11 partment of Veterans Affairs may not be offset by the

12 amount of such transfers to the Fund.

13 ‘‘(3) Amounts in the Fund shall be available, as pro14 vided in appropriations Acts, for purposes of medical re15 search conducted through the Veterans Health Adminis16 tration.

17 ‘‘(4)(A) The Secretary of the Treasury shall invest

18 such portion of the account established by paragraph (1)

19 as is not, in the judgment of the Secretary, required to

20 meet current withdrawals. Such investments may be made

21 only in interest-bearing obligations of the United States.

22 For such purpose, such obligations may be acquired—

23 ‘‘(i) on original issue at the issue price; or

24 ‘‘(ii) by purchase of outstanding obligations at

25 the market price.
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1 ‘‘(B) Any obligation acquired by the account may be

2 sold at the market price.

3 ‘‘(C) The interest on, and the proceeds from the sale

4 or redemption of, any obligations held in the account shall

5 be credited to and form part of the account.’’.

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