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(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—BENEFITS FOR MILITARY AND VOLUNTEER 
FIREFIGHTERS 
Sec. 101. Election to include combat pay as earned income for purposes of 
earned income tax credit. 
Sec. 102. Modification of mortgage revenue bonds for veterans. 
Sec. 103. Survivor and disability payments with respect to qualified military 
service. 
Sec. 104. Treatment of differential military pay as wages. 
Sec. 105. Exclusion from income for benefits provided to volunteer firefighters 
and emergency medical responders. 
Sec. 106. Special period of limitation when uniformed services retired pay is re-
duced as a result of award of disability compensation. 
Sec. 107. Distributions from retirement plans to individuals called to active 
duty. 
Sec. 108. Disclosure of return information relating to veterans programs made 
permanent. 
Sec. 109. Contributions of military death gratuities to Roth IRAs and Edu-
cation Savings Accounts. 
Sec. 110. Suspension of 5-year period during service with the Peace Corps. 
TITLE II—IMPROVEMENTS IN SUPPLEMENTAL SECURITY INCOME 
Sec. 201. Treatment of uniformed service cash remuneration as earned income. 
Sec. 202. State annuities for certain veterans to be disregarded in determining 
supplemental security income benefits. 
Sec. 203. Exclusion of AmeriCorps benefits for purposes of determining supple-
mental security income eligibility and benefit amounts. 
Sec. 204. Effective date. 
TITLE III—REVENUE PROVISIONS 
Sec. 301. Modification of penalty for failure to file partnership returns. 
Sec. 302. Penalty for failure to file S corporation returns. 
Sec. 303. Increase in information return penalties. 
Sec. 304. Increase in minimum penalty on failure to file a return of tax. 
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TITLE I—BENEFITS FOR MILI-
TARY AND VOLUNTEER FIRE-
FIGHTERS 
SEC. 101. ELECTION TO INCLUDE COMBAT PAY AS EARNED 
INCOME FOR PURPOSES OF EARNED INCOME 
TAX CREDIT. 
(a) IN GENERAL.—Clause (vi) of section 32(c)(2)(B) 
(defining earned income) is amended to read as follows: 
‘‘(vi) a taxpayer may elect to treat 
amounts excluded from gross income by 
reason of section 112 as earned income.’’. 
(b) SUNSET NOT APPLICABLE.—Section 105 of the 
Working Families Tax Relief Act of 2004 (relating to ap-
plication of EGTRRA sunset to this title) shall not apply 
to section 104(b) of such Act. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after De-
cember 31, 2007. 
SEC. 102. MODIFICATION OF MORTGAGE REVENUE BONDS 
FOR VETERANS. 
(a) QUALIFIED MORTGAGE BONDS USED TO FI-
NANCE RESIDENCES FOR VETERANS WITHOUT REGARD 
TO FIRST-TIME HOMEBUYER REQUIREMENT.—Subpara-
graph (D) of section 143(d)(2) (relating to exceptions) is 
amended by striking ‘‘and before January 1, 2008’’. 
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(b) INCREASE IN BOND LIMITATION FOR ALASKA, 
OREGON, 
AND
WISCONSIN.—Clause (ii) of section 
143(l)(3)(B) (relating to State veterans limit) is amended 
by striking ‘‘$25,000,000’’ each place it appears and in-
serting ‘‘$100,000,000’’. 
(c) DEFINITION
OF QUALIFIED VETERAN.—Para-
graph (4) of section 143(l) (defining qualified veteran) is 
amended to read as follows: 
‘‘(4) QUALIFIED
VETERAN.—For purposes of 
this subsection, the term ‘qualified veteran’ means 
any veteran who— 
‘‘(A) served on active duty, and 
‘‘(B) applied for the financing before the 
date 25 years after the last date on which such 
veteran left active service.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after December 
31, 2007. 
SEC. 103. SURVIVOR AND DISABILITY PAYMENTS WITH RE-
SPECT TO QUALIFIED MILITARY SERVICE. 
(a) PLAN
QUALIFICATION
REQUIREMENT
FOR 
DEATH BENEFITS UNDER USERRA-QUALIFIED ACTIVE 
MILITARY SERVICE.—Subsection (a) of section 401 (relat-
ing to requirements for qualification) is amended by in-
serting after paragraph (36) the following new paragraph: 
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‘‘(37) DEATH BENEFITS UNDER USERRA-QUALI-
FIED ACTIVE MILITARY SERVICE.—A trust shall not 
constitute a qualified trust unless the plan provides 
that, in the case of a participant who dies while per-
forming qualified military service (as defined in sec-
tion 414(u)), the survivors of the participant are en-
titled to any additional benefits (other than benefit 
accruals relating to the period of qualified military 
service) provided under the plan had the participant 
resumed and then terminated employment on ac-
count of death.’’. 
(b) TREATMENT IN THE CASE OF DEATH OR DIS-
ABILITY RESULTING FROM ACTIVE MILITARY SERVICE 
FOR BENEFIT ACCRUAL PURPOSES.—Subsection (u) of 
section 414 (relating to special rules relating to veterans’ 
reemployment rights under USERRA) is amended by re-
designating paragraphs (9) and (10) as paragraphs (10) 
and (11), respectively, and by inserting after paragraph 
(8) the following new paragraph: 
‘‘(9) TREATMENT IN THE CASE OF DEATH OR 
DISABILITY
RESULTING
FROM
ACTIVE
MILITARY 
SERVICE.— 
‘‘(A) IN
GENERAL.—For benefit accrual 
purposes, an employer sponsoring a retirement 
plan may treat an individual who dies or be-
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comes disabled (as defined under the terms of 
the plan) while performing qualified military 
service with respect to the employer maintain-
ing the plan as if the individual has resumed 
employment in accordance with the individual’s 
reemployment rights under chapter 43 of title 
38, United States Code, on the day preceding 
death or disability (as the case may be) and ter-
minated employment on the actual date of 
death or disability. In the case of any such 
treatment, and subject to subparagraphs (B) 
and (C), any full or partial compliance by such 
plan with respect to the benefit accrual require-
ments of paragraph (8) with respect to such in-
dividual shall be treated for purposes of para-
graph (1) as if such compliance were required 
under such chapter 43. 
‘‘(B) 
NONDISCRIMINATION
REQUIRE-
MENT.—Subparagraph (A) shall apply only if 
all individuals performing qualified military 
service with respect to the employer maintain-
ing the plan (as determined under subsections 
(b), (c), (m), and (o)) who die or became dis-
abled as a result of performing qualified mili-
tary service prior to reemployment by the em-
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