WASHINGTON -- Payments under the Department of Veterans Affairs (VA) Compensated Work Therapy (CWT) program are no longer taxable and disabled veterans who paid tax on these benefits in the past three years can now claim refunds, the Internal Revenue Service said today.

Recipients of CWT payments will no longer receive a Form 1099 from the Department of Veterans Affairs. Disabled veterans who paid tax on these benefits in tax-years 2004, 2005 or 2006 can claim a refund by filing an amended return using IRS Form 1040X. According to the VA, more than 19,000 veterans received CWT in Fiscal Year 2007.

The IRS agreed with a U.S. Tax Court decision issued earlier this year, which held that CWT payments are tax-free veteransÂ’ benefits. In so doing, the agency reversed a 1965 ruling which held that these payments were taxable and required the VA to issue 1099 forms to payment recipients.

According to the VA, the CWT program provides assistance to veterans unable to work and support themselves. Under the program, the VA contracts with private industry and the public sector for work by veterans, who learn new job skills, re-learn successful work habits and regain a sense of self-esteem and self-worth.

Family and Medical Leave Act Extended for Military Families

A provision of the FY 2008 National Defense Authorization Act (NDAA) will alter the Family and Medical Leave Act (FMLA) to assist military family members who need to take unpaid leave to care for an injured Servicemember. The new law, which took effect when the bill was signed on January 28, 2008, allows the spouses, children, parents or other next of kin who are providing care for an injured Servicemember to take as many as 26 weeks of unpaid leave in a twelve month period. Normally, eligible employers are permitted 12 weeks of unpaid leave for such family emergencies.

Another amendment to the law provides up to 12 weeks of leave for an employee with “any qualifying exigency” arising out of the fact that the spouse, or a son, daughter, or parent of the employee is on active duty or about to be mobilized for active duty in support of a contingency operation. This provision will not take effect until the Secretary of Labor issues final regulations defining “any qualifying exigency.” More information about the FMLA as it pertains to military families is available from the Department of Labor’s website: http://www.dol.gov/esa/whd/fmla/NDAA_fmla.htm

New Bill Seeks to Increase Cost of Living Benefit for Veterans

Senator Daniel K. Akaka (D-HI) has introduced legislation to increase veterans' compensation through a cost of living adjustment (COLA). The COLA is designed to offset inflation and other factors that alter the cost of living over time. The Veterans' Compensation Cost of Living Adjustment Act of 2008 (S 2617) directs the Secretary of Veterans Affairs to increase, as of December 1, 2008, the rates of veterans' disability compensation, dependency and indemnity compensation for surviving spouses and children, and additional related benefits. The rate of the COLA increase for veterans will match the annual increase provided to Social Security recipients. The legislation, which has bipartisan support, was introduced on February 8, 2008.

VA Changes Policy on PTSD Diagnosis

The Secretary of the Department of Veterans Affairs has directed the VA regional offices to end the requirement that veterans diagnosed with PTSD while on active duty provide additional evidence of exposure to specific stressors during their service in order to establish their diagnosis of PTSD. Instead, the VA will immediately schedule examinations for such veterans in order to determine the severity of their PTSD for VA compensation purposes.

[Source: http://akaka.senate.gov/public/index.cfm?FuseAction=PressReleases.Home&month=2&year=2008&release_id=2016]

New Research Details Suicide Rates among Veterans

According to the Associated Press, data obtained from the Department of Veterans’ Affairs (VA) shows Reserve personnel who served in Afghanistan or Iraq between 2001 and 2005 constituted 53 percent of suicides among returning veterans. Advocates for veterans have responded by arguing that more needs to be done to help members of the Reserve transition back into civilian life after deployment. One of the challenges faced by Reserve personnel experiencing difficulties in readjusting to civilian life is that they are often geographically removed from the services provided by military installations or VA facilities. Both the Department of Defense and the VA have stepped up suicide prevention efforts in recent years by hiring more counselors and implementing post-deployment screening programs. The VA also established a suicide prevention hotline, which can be reached at 1-800-273-TALK (8255).

[Source: http://www.armytimes.com/news/2008/02/ap_reservesuicide_080212/]

2008 National Summit on Women Veterans' Issues

The Center for Women Veterans, which is part of the Department of Veterans’ Affairs, is hosting the annual National Summit on Women Veterans' Issues at the Westin hotel, Washington DC City Center from June 20 to 22, 2008. The Summit is open to women veterans of all eras. There is no charge to attend but registration is required. More information is available at http://www1.va.gov/womenvet/page.cfm?pg=70

ACAP 'Express' Launched

The Army has launched a 12-month pilot of the Army Career Alumni Program Express to give Soldiers, their families and civilians a jump start on new careers as they retire or separate from the Army. The online program allows job-seekers to schedule career events and job fairs, access job assistance training tutorials, access an automated resume and cover-letter writer, and access ACAP counselors. Tutorials on job-search topics will also be available. Learn more at http://www.acap.army.mil/transitioner/transitioner.cfm

[Source: http://www.army.mil/-news/2008/02/15/7480-acap-express-to-debut-feb-28/]

Walter Reed's Warrior Clinic Officially Opens

Secretary of the Army Pete Geren and Vice Chief of Staff of the Army Gen. Richard Cody officially opened the Walter Reed Army Medical Center on February 15, 2008. The clinic actually began treating patients in October and currently serves about 686 outpatient Soldiers assigned to the Warrior Transition Brigade at Walter Reed. The Clinic’s is specifically designed to accommodate Soldiers with physical limitations. Also located in the Clinic are offices for doctors conducting a pilot program between the Department of Defense and the Department of Veterans’ Affairs to consolidate the medical evaluation board system. More information about the Clinic is available on the WRAMC website: http://www.wramc.amedd.army.mil/WarriorsInTransition

[Source: http://www.army.mil/-news/2008/02/15/7486-walter-reeds-warrior-clinic-officially-opens/]

DoD Healthcare Conference Highlights Benefits of IT

The theme of this year’s DoD Healthcare Information Management Systems Society (HIMSS) Conference was “In Support of the Wounded Warrior.” The conference highlighted how information technology can improve care for patients in the military healthcare system. For more information about the conference visit http://www.himssconference.org [Source: http://www.tricare.mil/pressroom/news.aspx?fid=366]

Economic Stimulus Package Information Available

The Internal Revenue Service (IRS) is providing details about the economic stimulus payments which will be sent to more than 130 million households beginning in May. The information is available at http://www.irs.gov/irs/article/0,,id=177937,00.html. The website also includes information for individuals who normally do not file tax returns, such as Social Security recipients and Veterans Benefits recipients, but who will need to file a tax return to be entitled to the stimulus payment. Many can use the simpler Form 1040A.

IRS Warns of Advance Payment Scams

The Internal Revenue Service has warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The IRS expects such scams to continue through the end of tax return filing season and beyond. The goal of many of these scams is to trick people into revealing their personal and financial information with promises of early refunds or rebates. You can find a list of the most recent scams brought to IRS attention through the following link: http://www.irs.gov/newsroom/article/0,,id=178061,00.html

AAFES Rewards Students Who "Make the Grade"

Students who maintain a “B” average are eligible to receive a variety of complimentary exchange offers for every qualifying report card they bring home as part of the Army and Air Force Exchange Services “You Made the Grade” effort. The current “You Made the Grade” booklet includes coupons and an opportunity to enter a drawing for a savings bond. To receive the AAFES “You Made the Grade” booklet, students simply present a valid military ID card and proof of an overall “B” or better average to their local BX/PX. Military families can contact their local AAFES Main Store Manager or General Manager for more information.

Recall of Icy Hot Products

Chattem, Inc. has initiated a voluntary nationwide recall its Icy Hot Heat Therapy products. Chattem is recalling these products because it has received some consumer reports of first, second and third degree burns as well as skin irritation resulting from consumer use or possible misuse of these products. All lots and all sizes of the following Icy Hot Heat Therapy products are affected by this recall:

1. Icy Hot Heat Therapy Air Activated Heat- Back
2. Icy Hot Heat Therapy Air Activated Heat- Arm, Neck, and Leg
3. Icy Hot Heat Therapy Air Activated Heat- Arm, Neck, and Leg single consumer use "samples" included on a limited promotional basis in cartons of 3 oz. Aspercreme Pain Relieving Crème.

Consumers who have the Icy Hot Heat Therapy products under recall should immediately stop using the products, discard them, and/or return them to Chattem, Inc. Product may be returned for a full refund (average retail price) by calling Chattem’s Consumer Affairs Department at 1-877-742-6275 (M-F from 8am to 4pm EST) or via Chattam’s website; http://www.Chattem.com. Any adverse reactions experienced with the use of the Icy Hot Heat Therapy products should also be reported the FDA Adverse Event Reporting Program, either online at http://www.fda.gov/medwatch/report.htm, or by fax at 800-FDA-0178, and to Chattem at the above toll-free number.

[Source: http://www.fda.gov/oc/po/firmrecalls/chattem02_08.html]