H.R. 3997 would amend the Internal Revenue Code of 1986 to provide earnings assistance and tax relief to members of the uniformed services, volunteer firefighters, and Peace Corps volunteers.

== Detailed Summary ==

<summary>
Heroes Earnings Assistance andDefenders of Freedom Tax Relief Tax Act of 20072007<b> - <b>Title I: Benefits for Military and Volunteer Firefighters</b> - (Sec. 101) Amends</b>Amends the Internal Revenue Code to make permanent the taxpayer electionprovide tax relief and earnings assistance to include combat zone compensation as earned income for purposesmembers of computing the earned income tax credit.uniformed services, volunteer firefighters, and Peace Corps volunteers.

(Sec. 102)<b> Title I: Tax Relief and Protections for Military Personnel </b>- (Sec. 101) Makes permanent the eligibility of veterans for mortgage bond financing of residences without regard to first-time homebuyer requirements.

Increases to $100 million the veterans' mortgage bond limitation in Alaska, Oregon, and Wisconsin. Revises the definition(Sec. 102) Excludes basic military housing allowances as an item of &quot;qualified veteran&quot;income for mortgage bond financingdetermining eligibility purposes to make such definition applicable to veterans in all states.for tax-subsidized residential rental housing.

(Sec. 103) Requires tax-qualified pension plans to entitle survivors of plan participants who die while on active military duty to additional benefits and benefit accruals provided under such plans for participants who resume and then terminate employment due to death.

(Sec. 104) Treats differential wage payments to an employee as a payment of wages for income tax purposes. Defines &quot;differential wage payment&quot; as any employer payment to an individual serving on active duty in the uniformed services for more than 30 days which represents wages such individual would have received if such individual were performing services for the employer.

Treats an individual receiving differential wage payments as an employee and treats differential wage payments as compensation for retirement plan purposes.

(Sec. 105) Allows members of a qualified volunteer emergency response organization (i.e., an organization that provides firefighting and emergency medical services) an exclusion from gross income for state and local tax benefits and for certain payments for services.

(Sec. 106) Allows members of the uniformed services whose retired pay in any taxable year is reduced due to an award of disability compensation by the Department of Veterans Affairs an extension of the three-year limitation period for filing tax refund claims until one year after the date of a disability determination. Limits the period for which such refund claims may be filed to taxable years beginning more than five years before the date of a disability determination.

(Sec. 107) Makes permanent the tax exemption for distributions from retirement plans for individuals called or ordered to active duty after December 31, 2007.

(Sec. 108) Makes permanent the authority of the Internal Revenue Service (IRS) to disclose tax information to the Department of Veterans Affairs for veteran benefit payment purposes.

(Sec. 109) Allows a tax-free rollover of any military death gratuity and any group life insurance payment to a survivor's Roth individual retirement account (Roth IRA) or to an education savings account.

(Sec. 110) Allows a Peace Corps volunteer antaxpayer election to suspend for five years while serving as a volunteer the ownership and use requirements for the exclusion of gain on the sale of a principal residence.

<b>Title II: Improvements in Supplemental Security Income</b> - (Sec. 201) Amends title XVI (Supplemental Security Income for the Aged, Blind, and Disabled) of the Social Security Act to treat cash remuneration paid to a member of the uniformed servicesinclude combat zone compensation as earned income and certain housing payments to such members as in-kind support and maintenance for supplemental security income (SSI) program purposes.

(Sec. 202) Excludes state annuity payments to blind, disabled, or aged veterans for purposes of SSI benefit determinations.

(Sec. 203) Excludes any cash or in-kind benefit paid to an AmeriCorps participant from SSI income eligibility and benefit determinations.

(Sec. 204) Makescomputing the amendments of this title effective 60 days after the enactment of this Act.

<b>Title III: Revenue Provisions</b> - (Sec. 301) Extends from 5 to 12 months the penalty period for failure to file a partnership tax return. Increases the monetary penalty for such failure to $100 per partner for each month of noncompliance.

(Sec. 302) Imposes an additional penalty for failure to file an S corporation tax return or related information.

(Sec. 303) Increases penalties for failure to file correct tax information returns, failure to furnish correct payee statements to taxpayers, and failure to comply with other information reporting requirements.

(Sec. 304) Increases the minimum monetary penalty for failure to file anearned income tax return to the lesser of $225 or 100% of the tax due.credit.
</summary>

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== Status of the Legislation ==

<status>
Latest Major Action: 12/19/2007: Resolving differences -- Senate actions. Status: Senate concurred in the House amendment to the Senate amendment with an amendment (SA 3890) by Unanimous Consent.
</status>

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== Points in Favor ==

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== Points Against ==

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