II 

108TH CONGRESS 

1ST SESSION S. 1898

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

part or all of any income tax refund to support reservists and National 

Guard members. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 20, 2003

Mr. COLEMAN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL

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

to support reservists and National Guard members.

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 ‘‘Voluntary Support for 

5 Reservists and National Guard Members Act’’. 

6 SEC. 2. DESIGNATION OF OVERPAYMENTS TO SUPPORT RE7 SERVISTS. 

8 (a) DESIGNATION.—
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1 (1) IN GENERAL.—Subchapter A of chapter 61 

2 of the Internal Revenue Code of 1986 is amended by 

3 adding at the end the following new part: 

4 ‘‘PART IX—DESIGNATION OF OVERPAYMENTS TO 

5 SUPPORT RESERVISTS

‘‘Sec. 6097. Designation.

6 ‘‘SEC. 6097. DESIGNATION. 

7 ‘‘(a) IN GENERAL.—In the case of an individual, with 

8 respect to each taxpayer’s return for the taxable year of 

9 the tax imposed by chapter 1, such taxpayer may des10 ignate that a specified portion (not less than $1) of any 

11 overpayment of tax for such taxable year be paid over to 

12 the Reservist Income Differential Trust Fund. 

13 ‘‘(b) MANNER AND TIME OF DESIGNATION.—A des14 ignation under subsection (a) may be made with respect 

15 to any taxable year only at the time of filing the return 

16 of the tax imposed by chapter 1 for such taxable year. 

17 Such designation shall be made in such manner as the 

18 Secretary prescribes by regulations except that such des19 ignation shall be made either on the first page of the re20 turn or on the page bearing the taxpayer’s signature. 

21 ‘‘(c) OVERPAYMENTS TREATED AS REFUNDED.—For 

22 purposes of this title, any portion of an overpayment of 

23 tax designated under subsection (a) shall be treated as—
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•S 1898 IS 

1 ‘‘(1) being refunded to the taxpayer as of the 

2 last date prescribed for filing the return of tax im3 posed by chapter 1 (determined without regard to 

4 extensions) or, if later, the date the return is filed, 

5 and 

6 ‘‘(2) a contribution made by such taxpayer on 

7 such date to the United States.’’. 

8 (2) TRANSFERS TO RESERVIST INCOME DIF9 FERENTIAL TRUST FUND.—The Secretary of the 

10 Treasury shall, from time to time, transfer to the 

11 Reservist Income Differential Trust Fund the 

12 amounts designated under section 6097 of the Inter13 nal Revenue Code of 1986. 

14 (3) CLERICAL AMENDMENT.—The table of 

15 parts for subchapter A of chapter 61 of the Internal 

16 Revenue Code of 1986 is amended by adding at the 

17 end the following new item:

‘‘Part IX. Designation of overpayments to support reservists.’’.

18 (b) RESERVIST INCOME DIFFERENTIAL TRUST

19 FUND.—

20 (1) IN GENERAL.—Subchapter A of chapter 98 

21 of the Internal Revenue Code of 1986 (relating to 

22 trust fund code) is amended by adding at the end 

23 the following new section: 
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1 ‘‘SEC. 9511. RESERVIST INCOME DIFFERENTIAL TRUST 

2 FUND. 

3 ‘‘(a) ESTABLISHMENT.—There is established in the 

4 Treasury of the United States a trust fund to be known 

5 as the ‘Reservist Income Differential Trust Fund’, con6 sisting of such amounts as may be appropriated or cred7 ited to such Trust Fund as provided in this section or sec8 tion 9602(b). 

9 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here10 by appropriated to the Reservist Income Differential Trust 

11 Fund amounts equivalent to the amounts designated 

12 under section 6097 (relating to designation of overpay13 ments to support reservists). 

14 ‘‘(c) EXPENDITURES.—Amounts in the Reservist In15 come Differential Trust Fund shall be available for mak16 ing distributions to eligible members of reserve compo17 nents in accordance with section 212 of title 37, United 

18 States Code.’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions for such subchapter is amended by adding at 

21 the end the following new item:

‘‘Sec. 9511. Reservist Income Differential Trust Fund.’’.

22 (c) EFFECTIVE DATES.—

23 (1) SUBSECTION (a).—The amendments made 

24 by subsection (a) shall apply to taxable years begin25 ning after December 31, 2003. 
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1 (2) SUBSECTION (b).—The amendments made 

2 by subsection (b) shall take effect on the date of the 

3 enactment of this Act. 

4 SEC. 3. PAY DIFFERENTIAL FOR MOBILIZED RESERVES. 

5 (a) AUTHORITY.—

6 (1) IN GENERAL.—Chapter 3 of title 37, United 

7 States Code, is amended by adding at the end the 

8 following new section: 

9 ‘‘§ 212. Reserves on active duty: pay differential for 

10 service in support of a contingency oper11 ation 

12 ‘‘(a) AUTHORITY.—To the extent provided in appro13 priations Acts, the Secretary of a military department 

14 shall pay an eligible member of a reserve component of 

15 the armed forces a pay differential computed under sub16 section (c). 

17 ‘‘(b) ELIGIBLE MEMBER.—A member of a reserve 

18 component is eligible for a pay differential for each month 

19 during which the member is serving on active duty for a 

20 period of more than 30 days pursuant to a call or order 

21 to active duty under a provision of law referred to in sec22 tion 101(a)(13)(B) of title 10. 

23 ‘‘(c) AMOUNT.—(1) Subject to paragraphs (2) and 

24 (3), the amount of a pay differential paid under this sec25 tion for a month to a member called or ordered to active 
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1 duty as described in subsection (b) shall be equal to the 

2 excess of—

3 ‘‘(A) the monthly rate of the salary, wage, or 

4 similar form of compensation that applied to the 

5 member in the member’s position of employment (if 

6 any) for the last full month before the month in 

7 which the member either commenced the period of 

8 active duty to which called or ordered or commenced 

9 the performance of duties for the armed forces in 

10 another duty status in preparation for the perform11 ance of the active duty to which called or ordered, 

12 over 

13 ‘‘(B) the monthly rate of basic pay payable to 

14 the member under section 204 of this title for such 

15 month of active-duty service. 

16 ‘‘(2) The Secretary concerned may pay a member a 

17 pay differential under this section for a month in an 

18 amount less than the amount computed under paragraph 

19 (1) if the Secretary concerned determines that it is nec20 essary to do so on the basis of the availability of funds 

21 for such purpose. 

22 ‘‘(3) A member may not be paid more than a total 

23 of $25,000 under this section. 

24 ‘‘(d) FUNDING.—(1) Pay differentials under this sec25 tion shall be paid out of funds that are transferred from 
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1 the Reservist Income Differential Trust Fund to military 

2 personnel accounts for the purposes of this section. 

3 ‘‘(2) The Secretary of Defense and the Secretary of 

4 the Treasury shall jointly prescribe regulations providing 

5 for transfers of funds in the Reservist Income Differential 

6 Trust Fund to the appropriate military personnel accounts 

7 to make payments under this section. 

8 ‘‘(3) In this section, the term ‘Reservist Income Dif9 ferential Trust Fund’ means the Reservist Income Dif10 ferential Trust Fund referred to in section 6097 of the 

11 Internal Revenue Code.’’. 

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions at the beginning of such chapter is amended 

14 by adding at the end the following new item:

‘‘212. Reserves on active duty: pay differential for service in support of a contingency operation.’’.

15 (b) EFFECTIVE DATE.—Section 212 of title 37, 

16 United States Code, shall take effect on October 1, 2004, 

17 and shall apply with respect to months that begin on or 

18 after that date.

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