VA Versus IRS

As the backlogged number of unprocessed VA claimsis living in conditions that are not healthy or services
is knocking on the door of 1 Million, one has to wonderbeing provided are not adequate even though they are
is anybody really at home. Is anyone really trying toentitled to the pension which would allow for better
find "the" solution of how to fix and bring this brokencare and services, who is really taking advantage of
agency up to the standards our veterans and theirthe veteran?
families deserve?All of this "protecting" has created an "opportunity for
I had high hopes for the new VA administration, but tomany individuals and companies to "Carpe Diem" -
date, have not been impressed. Every day there is yetSeize the Moment and many of these folks, but not all,
another story about a Regional Office that has beenhave found a way to use filing for this pension as a
caught shredding and changing dates on applications,revenue generator, and doing so under the guise of
or boxes of unopened applications are beingreaching out to veterans and their families at no cost
discovered. There are not enough fingers to cover thefor their assistance to make application, but it sure
holes in this dam.helps if mom and dad need someone to manage their
If the IRS was having this issue with collecting taxesinvestments and move them around so they will qualify
from "We the People", I can promise you that thisfor the pension from a financial standpoint.
would have been resolved and systems put into placeSeminars are being held daily nationwide at $500.00 a
to make certain it would never happen again. Of thissession to learn how you too can use this pension to
you can be certain, the IRS would not stand by andrecruit new business and increase your sales. Don't
have 1 million tax returns waiting to be processed.overlook the kids who are taking care of mom and
So here is my take on all this and a couple ofdad, they will be so grateful for your assistance they
questions that I believe bear asking.will want you to manage their assets as well. While
I think the VA needs to take a crash course in howyou are at it, sell some annuities.
the IRS does things. These folks don't loose taxWhat most don't realize is that by moving things
returns they keep up with every dime you make. Youaround to a trust or annuity can often mean that when
can file on-line, they know if you haven't filed, and ifmom or dad need that money to continue paying for
you are owed a refund, you can expect it in 30-45their care, they won't have access to it. It will sit in that
days. If you owe money and don't pay, you aretrust until they die and the beneficiaries get it.
assessed a penalty and will pay dearly for that. BigFor those who are fortunate enough to have assets
incentive for making sure you allot the right amount ofthat need protecting, these services are valid, but for
deductions. Most of us hope to never know what anthose who go into this situation strictly based on
audit notification looks like.wanting to file for this pension, you need to educate
If your taxes are complicated or more than you wantyourself on whether this is truly in your best interest in
to deal with, you can make an appointment with thethe long run.
fine folks at H&R Block or your personalAgain this frenzy of businesses using this pension to
accountant and pay someone to prepare them forget in the hen house is largely due to the fact that the
you.VA has created a need for these services due to the
Now here is where I take issue. How is it that you canlack of information, the lack of trained employees well
legally seek the expertise of someone whoversed in Improved Pension, taking a simple application
understands complicated tax laws, forms, and all theand turning it into more than it needs to be. If it was as
legitimate deductions and credits you are entitled tooriginally designed - a simple 4- page application based
just to make certain that the IRS gets a full accountingon meeting the need for assistance and financial
of your finances and their piece of your pie, butguidelines, there would not be a need nor an
veterans and their families legally are restricted fromopportunity for those who use this as a calling card.
any assistance attached with a fee and are left toAs a result, the VA has responded by now sending
figure it out on their own.out an additional form to those who submit an
Two government agencies, two different approaches,application that they have to sign stating that neither
two different agendas.they nor the veteran have paid anyone for any type
It is legal to make sure you pay your taxes, but illegalof assistance in completing the application. The
to make certain your claim for benefits is correct andapplication will not be processed until this form has
complete in order to "receive" your entitlements.been returned.
Interesting that there should be such a stark contrastSo in the name of "protecting" the veteran, which in
between the two and who actually benefits from thismy opinion translates to denying the veteran, there is
arrangement.yet another hurdle to jump through.
Decades ago the VA instituted a law that an attorneyRather an unfair dynamic that the VA has its
could not charge a veteran more than $10.00 forattorneys and council, but a veteran is not entitled to
representing him. This was done to "protect" theany representation upon making an initial application for
veteran from being taken advantage of by those whoany benefit or compensation. They are only entitled to
would be so inclined to do so.representation if they are appealing a decision on their
So one might have to ask, who is truthfully exploitingclaim while the IRS wants to make sure you get it right
and taking advantage of our veterans and theirthe first time.
families? Considering some recent actions on the partOf the two, which do you think is more efficient?
of the VA, the answer to this question may not beThere are more of us that file income tax returns than
what you'd expect.there are veterans/widows filing for benefits, so how
The application for Improved Pension was originally ais it that the IRS can receive and process a higher
4-page, simple straight forward application. Due to thevolume of paper so seamlessly while the VA claims
benefit being highlighted and the rise in the number ofthey never received the application even though you
applications being submitted, the VA decided it washave a signed "Registered Return Receipt" proving
time to increase it to a 26-page application, and write itthat they did?
so that you probably won't figure it out increasing theIf you posed the question of why the IRS created the
odds they won't have to pay or at the very leastEZ form while the VA took an easy form and turned it
delay having to pay.into 26 pages, it really is self explanatory. One wants
While the benefit sat idle and unused, 4 pages seemedyour money and the other hedges their bets they can
to make perfect sense. Now that Baby-Boomers arekeep their money.
our largest demographic and the VA is being floodedThis mindset is nothing new. For insight as to how long
with applications for Aid and Attendance, whose bestthis treatment and mentality has been permitted and
interest is it in that the process should suddenlypromoted, one need look no further than what was
become so much more complicated? The veteran isdone to the "Bonus Army" when our veterans
not who first comes to mind as to who stands to gainmarched into Washington in 1932 demanding what had
the most from this change. It seems a little suspect asbeen promised. Not much has changed in 77 years. Do
to the true motivation for having done so. Is the VAyourself a favor and Google "Bonus Army". You'll be
once again "protecting" the veteran?enlightened for having done so.
If you don't get it right the first time, you should not feelI know there are a lot of good hardworking people at
too badly about it as the national rate of applicationsthe VA and local offices who have the right intent, but
being returned to the originating VA regional and localthey are only acting under the directives they have
offices as being incomplete or missing documentationbeen given. What I want to know is who signs the
is 46%.memo authorizing these practices.
I wonder if these same employees who failed VAWhen bonuses hinge on giving a veteran the lowest
"Open Book" tests could find permanent employmentpossible disability rating rather than the rating they
with the IRS. I suspect that performance standards aredeserve, I'm hard pressed to believe that this qualifies
probably just a "little" higher. Millions of taxpayer'sas acting in the veteran's best interest. Make no
monies going uncollected - not going to happen, but it ismistake here, there is a vested interest, but
ok for a million veterans to be waiting on the VA tosomewhere along the way the interest got shifted to
get it right. There is something incredibly wrong withself serving.
this scenario.Like solving any other mystery - follow the money.
The VA continues to operate off an antiquatedUntil such time that the VA can get its house in order, I
"Fiduciary" process refusing to acknowledge POA orthink the individuals who do nothing but help file for
DPOA. The IRS acknowledges POA. Your mom orImproved Pension and have no hidden agenda or want
dad might have some investments that pay dividends,to sell you anything, should have the right to provide
so there may be some monies to be collected, so forthe same assistance as your accountant does. Most
the sake of efficiency they will gladly work with you toof these well intended folks have to stay behind
assure a proper return has been filed.closed doors for fear of retribution by the VA for
The VA's refusal to respond to the demands ofactually helping a veteran make a correct application.
accepting POA and doing away with the fiduciaryThe VA will argue that the veteran is entitled to
process is once again done in the name of "protecting"assistance with filing for free, but when the SO of the
the veteran. According to the VA they have to makeoffice you walk into knows nothing about the pension,
certain that the family member or other interestedor says you don't qualify, when actually you do, "free"
party who holds POA can't take advantage of thecomes at a pretty hefty price.
veteran or widow and have access to the pensionYes these folks (the good ones) who work secretly
money to spend at their discretion such as purchasingbehind the scenes helping veterans and their families
Depends or Ensure.should be able to charge a modest fee for their
I'm sure that somewhere there is someone whoexpertise and assistance, but the VA will never
absconded with funds they were not entitled to andsanction anything of the likes, they have too much to
did in fact take advantage of a veteran, but I'm willinglose.
to wager a guess that most who are providing careThere would be too many applications to approve with
for a loved one have spent the check out of their ownno reason to deny them. There are budgets to be
pocket long before it is received.justified, bonuses to be earned, and credits for getting
It is the lesser of two evils. On one hand you have thea Service Organization assigned as Claimant's
family member who is taking advantage of theRepresentative rather than the family member so that
veteran or widow by writing a check every month toyou can't call and inquire about the status of the claim.
the ALF or caregiver hoping they will have enough toThe SO isn't paying the monthly bill so they won't have
pay it as credit cards are maxed out and all fundsmuch motivation to follow up and press for a ruling or
have been depleted while waiting to be approved as aapproval. And lastly they are busy making sure that no
fiduciary.one other than them can "take advantage" of a
On the other hand you have the VA who wants toveteran or widow.
take months to arrange for a fiduciary to be appointedThe IRS has a few free months before it is tax
without much care as to how you will pay forseason again. Maybe they can step in and show the
everything pending their approval. In the meantime ifVA how to get the job done. Better yet, instead of
you have to move your loved one to a lesser qualityemployees getting bonuses for the highest number of
facility due to costs, or arrange to bring them in-homedenied applications or lowest disability ratings given,
and provide the care yourself, keep in mind the VA ishow about an imposed penalty with incurring interest
only doing their job and "protecting" the veteran orfor any application that takes longer than 90 days to
widow.process!
So if the veteran is doing without basic essentials andNow there's an idea that has merit.