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Other Payments
National Defense Authorization Act of 1997 Payments
Compensation payments made in accordance with the National Defense Authorization Act of 1997 to individuals captured and interned by North Vietnam are exempt as property beginning with the month following receipt, as long as these funds are kept separately identifiable.
Verification
The compensation payments are made in the form of a check from “The Lost Army Commando Trust Fund” and the recipient should also have a letter from the Office of the Assistant Secretary of Defense that identifies the payment as having been made in accordance with the National Defense Act of 1997.
Ricky Ray Hemophilia Relief Fund Act Payments
The Ricky Ray Hemophilia Relief Fund Act provides payments to individuals with blood-clotting disorders such as hemophilia and those who contracted the human immunodeficiency virus due to contaminated blood products in the process of medical treatment. The fund payments are exempt as property beginning with the month following receipt, indefinitely, as long as these funds are kept separately identifiable.
Gifts to Children With Life-Threatening Conditions
These gifts may be in cash or in kind given by a tax-exempt organization to a child under 18 who has a life-threatening condition. All gifts are exempt as property up to $2,000 in a calendar year beginning with the month following receipt, as long as these funds are kept separately identifiable.
Verification
A sworn statement by the parent attesting to the child’s life-threatening illness is sufficient verification. If the verification is questionable, the EW may require a verbal or written statement from a physician.
To verify if the organization making the gift meets the requirements of a tax-exempt organization, the EW must obtain a copy of the organization’s IRS 501(c) exemption certification.
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