Senate Approves Permanent Tax Exemption For Holocaust Victims
Provided courtesy of CCH
The Senate last week approved, by unanimous consent, a measure to repeal the sunset of an exclusion from federal income tax for restitution received by Holocaust victims. The Holocaust Restitution Tax Fairness Bill (Sen 2577) makes permanent the provision originally included in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (P.L. 107-16).
The House approved similar legislation (HR 4823) by voice vote on June 4 (TAXDAY, 2002/06/05, C.1). The legislation can now move to President Bush's desk for his expected signature.
The federal government should not receive a financial windfall from Holocaust payments, the House bill's sponsor, House Ways and Means Social Security Subcommittee Chairman E. Clay Shaw, Jr. (R-Fla.), stated in a November 21 press release. Sunsetting the EGTRRA tax cuts creates uncertainty in tax planning for Holocaust survivors and their families, he added.
There will be an estimated 88,000 Holocaust survivors in 2010 when the tax cut would have sunset, according to Shaw. Exempting Holocaust payments will cost $3 million in federal tax revenues for 2012, according to the Joint Committee on Taxation.