I 
110TH CONGRESS 
1ST SESSION H. R. 2234 
To amend the Internal Revenue Code of 1986 to provide for an extension 
of the period of limitation to file claims for refunds on account of 
disability determinations by the Department of Veterans Affairs. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2007 
Mr. FARR (for himself and Mr. FILNER) introduced the following bill; which 
was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for an extension of the period of limitation to file claims 
for refunds on account of disability determinations by 
the Department of Veterans Affairs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disabled Veterans Tax 
Fairness Act of 2007’’. 
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SEC. 2. SPECIAL PERIOD OF LIMITATION WHEN UNI-
FORMED SERVICES RETIRED PAY IS RE-
DUCED AS A RESULT OF AWARD OF DIS-
ABILITY COMPENSATION. 
(a) IN GENERAL.—Subsection (d) of section 6511 of 
the Internal Revenue Code of 1986 (relating to special 
rules applicable to income taxes) is amended by adding 
at the end the following new paragraph: 
‘‘(8) SPECIAL RULES WHEN UNIFORMED SERV-
ICES RETIRED PAY IS REDUCED AS A RESULT OF 
AWARD OF DISABILITY COMPENSATION.— 
‘‘(A) PERIOD OF LIMITATION ON FILING 
CLAIM.—If the claim for credit or refund re-
lates to an overpayment of tax imposed by sub-
title A on account of— 
‘‘(i) the reduction of uniformed serv-
ices retired pay computed under section 
1406 or 1407 of title 10, United States 
Code, or 
‘‘(ii) the waiver of such pay under sec-
tion 5305 of title 38 of such Code, 
as a result of an award of compensation under 
title 38 of such Code pursuant to a determina-
tion by the Secretary of Veterans Affairs, the 3- 
year period of limitation prescribed in sub-
section (a) shall be extended, for purposes of 
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permitting a credit or refund based upon the 
amount of such reduction or waiver, until the 
end of the 1-year period beginning on the date 
of such determination. 
‘‘(B) 
LIMITATION
TO
TAXABLE 
YEARS.—Subparagraph (A) shall not apply with 
respect to any taxable year which began more 
than 15 years before the date of such deter-
mination.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to claims for credit or refund 
filed after the date of the enactment of this Act. 
(c) TRANSITION RULES.—In the case of a determina-
tion described in paragraph (8) of section 6511(d) of the 
Internal Revenue Code of 1986 (as added by this section) 
which is made by the Secretary of Veterans Affairs after 
December 31, 1989, and before the date of the enactment 
of this Act, such paragraph— 
(1) shall not apply with respect to any taxable 
year which began before December 31, 1989, and 
(2) shall be applied by substituting ‘‘the date of 
the enactment of the Disabled Veterans Tax Fair-
ness Act of 2007’’ for ‘‘the date of such determina-
tion’’ in subparagraph (A) thereof. 
Æ 
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