Veterans Health Benefits Voluntary Option Act of 2006

Veterans Health Benefits Voluntary Option Act of 2006 - Amends the Internal Revenue Code to allow a taxpayer to designate an overpayment of income taxes to fund health benefits provided by the Department of Veterans Affairs.

Establishes in the Treasury the Department of Veterans Affairs Health Benefits Fund to receive designated tax overpayments and to pay health benefits through the Veterans Health Administration.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5044 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5044

   To amend the Internal Revenue Code of 1986 to allow taxpayers to 
   designate that income tax overpayments be paid over for veterans' 
                            health benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2006

Mrs. Jo Ann Davis of Virginia introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
    Committee on Veterans' Affairs, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow taxpayers to 
   designate that income tax overpayments be paid over for veterans' 
                            health benefits.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Health Benefits Voluntary 
Option Act of 2006''.

SEC. 2. DESIGNATION OF INCOME TAX OVERPAYMENTS TO FUND VETERANS' HEALTH 
              BENEFITS.

    (a) General Rule.--Subchapter A of chapter 61 of the Internal 
Revenue Code of 1986 (relating to returns and records) is amended by 
adding at the end the following new part:

  ``PART IX--DESIGNATION OF INCOME TAX OVERPAYMENTS TO FUND VETERANS' 
                            HEALTH BENEFITS

``Sec. 6097. Designation of income tax overpayments.

``SEC. 6097. DESIGNATION OF INCOME TAX OVERPAYMENTS.

    ``(a) General Rule.--Every taxpayer who makes a return of the tax 
imposed by subtitle A for any taxable year may designate that a 
specified portion (not less than $1) of any overpayment of tax for such 
taxable year shall be used for health benefits provided by the 
Department of Veterans Affairs.
    ``(b) Manner and Time of Designation.--Any designation under 
subsection (a) for any taxable year shall be made--
            ``(1) at the time of filing the return of the tax imposed 
        by subtitle A for such taxable year, and
            ``(2) in such manner as the Secretary may by regulation 
        prescribe, except that such designation shall be made either on 
        the first page of the return or on the page bearing the 
        taxpayer's signature.
    ``(c) Treatment of Amounts Designated.--For purposes of this title, 
the amount designated by any taxpayer under subsection (a)--
            ``(1) shall be treated as being refunded to such taxpayer 
        as of the last date prescribed for filing the return of tax 
        imposed by subtitle A (determined without regard to extensions) 
        or, if later, the date the return is filed, and
            ``(2) shall be treated as a contribution made by such 
        taxpayer on such date to the United States.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 61 of such Code is amended by adding at the end thereof the 
following new item:

  ``Part IX. Designation of income tax overpayments to fund veterans' 
                          health benefits.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. DEPARTMENT OF VETERANS AFFAIRS HEALTH BENEFITS FUND.

    (a) In General.--Chapter 83 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 8306. Department of Veterans Affairs Health Benefits Fund
    ``(a) There is established in the Treasury of the United States an 
account to be known as the `Department of Veterans Affairs Health 
Benefits Fund' (in this section referred to as the `Fund'), consisting 
of such amounts as may be transferred or credited to the account under 
this section.
    ``(b) The Secretary of the Treasury shall, from time to time, 
transfer to the Fund the amounts designated under section 6097 of the 
Internal Revenue Code of 1986. Amounts that otherwise would be 
appropriated for the Department of Veterans Affairs may not be offset 
by the amount of such transfers to the Fund.
    ``(c) Amounts in the Fund shall be available, as provided in 
appropriations Acts, for purposes of providing health benefits through 
the Veterans Health Administration.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``8306. Department of Veterans Affairs Health Benefits Fund.''.
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