CHAPTER 16. MISCELLANEOUS

16.01 ADJUSTED SERVICE CERTIFICATES

Adjusted Service Certificates were issued to veterans who applied before January 3, 1940. To qualify for the bonus, a veteran had to have at least 60-days service between April 15, 1917, and November 11, 1918. The bonus paid was $1 a day for Stateside service and $1.25 a day for overseas service. All inquiries relative to these certificates will be forwarded to the Regional Office, Washington, DC. Payment on all adjusted certificates will also be processed by the Regional Office, Washington, DC.

16.02 NOTICE OF LEVY FOR DELINQUENT FEDERAL TAXES

a. Veterans and Beneficiaries. Notice of levy for delinquent Federal taxes received from the Internal Revenue Service (IRS) will be applied against the affected insurance, pension, subsistence, or educational training account.

b. Exceptions: The IRS exempts from levy service-connected compensation payments to veterans and their dependents, as well as dependency and indemnity compensation and other types of support payments (e.g. for education and housing). Specifically, 26 U.S.C. Section 6334(a)(10) (1269) exempts from tax levy the following benefits.

Any amount payable to an individual as a service-connected (within the meaning of section 101(16) of title 38 United States Code) disability benefit under:

1. Subchapter II, III, IV, V, or VI of chapter 11 of such title 38, or

2. Exempted benefits by Chapter:

(a) Chapter 13, Dependency and Indemnity Compensation for Service-Connected Deaths,

(b) Chapter 21, Specially Adapted Housing for Disabled Veterans,

(c) Chapter 23, Burial Benefits,

(d) Chapter 31, Training and Rehabilitation for Veterans with Service-Connected Disabilities,

(e) Chapter 32, Post-Vietnam ERA Veterans' Educational Assistance,

(f) Chapter 34, Veterans' Educational Assistance,

(g) Chapter 35, Survivors' and Dependents' Educational Assistance,

(h) Chapter 37, Housing and Small Business Loans, and

(i) Chapter 39, Automobiles and Adaptive Equipment for Certain Disabled Veterans and Members of the Armed Forces.

If there are any questions concerning these exemptions, contact the Adjudication Officer.

c. Training Institutions. Notice of levy against a training institution will be applied against payment of annual reporting fees.