ML20210P579
| ML20210P579 | |
| Person / Time | |
|---|---|
| Issue date: | 07/09/1999 |
| From: | Dicus G, The Chairman NRC COMMISSION (OCM) |
| To: | Cyr K NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| References | |
| COMSECY-99-020, NUDOCS 9908130035 | |
| Download: ML20210P579 (2) | |
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June 25,1999 OFFICE oF THE GENERAL COUNSEL COMSECY-99-020 MEMORANDUM TO:
Chairman Jackson Commissioner Dieus APPROVED SUBJECT TO ATTACHED EDIT Commissioner Diaz Commission'~r McGaffigan gdb e
Commissioner Merrifield G
ta J g g us, ChsTrman FROM:
Karen D. Cyr
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General Couns
SUBJECT:
NRC RESPONSE TO REQUEST FOR SUPPORT OF FEDERAL TAX RELIEF FOR WHISTLEBLOWERS The purpose of this memorandum is to seek Commission annroval of _a proposed response to a request for written support of legislation which would amend the Internal Revenue Code (IRC) such that it does not serve as a deterrent to whistleblowers.
On April 23,1999, the NRC received a letter from Mr. Shannon Doyle, requesting that the Commission publicly support legislation which would change the tax treatment of amounts received as a result of employment discrimination claims. On May 13,1999, the Office of the General Counsel (OGC) sent an interim response to Mr. Doyle, stating that the issue was new to the NRC and under consideration.
Mr. Doyle has informed NRC that, pursuant to a 1989 employment discrimination complaint filed with the Department of Labor under section 211 of the Energy Reorganization Act, as amended, he was awarded amounts for backpay, frontpay and compensatory damages. This award has not yet been paid, as the issue of calculation of the amounts to be awarded is still pending before the Department of Labor. In addition, he was awarded attorneys' fees that are j
to be paid directly to his law firm by the employer. Mr. Doyle's letter states his concern about l
the Federal tax treatment of these amounts under current law, which could result in loss of most 1
or all of the award. He argues that this treatment could result in a chilling effect on whistleblowers who would otherwise come forward with health and safety concerns.
i Prior to 1996, the IRC excluded from the income tax personal injury damages for both physical and rionphysical harm. The Small Business Job Protection Act of 1996 ("1996 Act") amended CONTACT:
Brooke D. Pcole, OGC y
(301) 415-2490
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9900130035 990709 PDR COMMS NRCC CORRESPONDENCE PDR I
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- p Mr. Shannon T. Doyle.
3762 West Cook Road Dothan, AL 36301
Dear Mr. Doyle:
L This is in' reference to your letter,' dated April 23,1999, seeking NRC support for legislation similar to H.R. 2792, the " Employment Discrimination Award Tax Relief Act." As you know, on May 27,1999, Representative Pryce introduced H.R.1997, the " Civil Rights Tax Fairness Act of l
1999." This proposed legislation, while it' differs in several respects from H.R. 2792, would have the effect of providing some tax relief to claimants who have received amounts as a result of unlawful discrimination claims.- " Unlawful discrimination," as defined in this proposed legislation, includes claims made under whistleblower protection provisions such as section 211 of the
' Energy Reorganization Act, as amended.
The NRC has reviewed the fundamental questions that you have raised. The tax issues addressed in proposed legislation such as H.R. 2792 and H.R.1997 encompass a broad range j
of unlawful discrimination claims, in areas well beyond the purview of the whistleblower l
. protections of section 211. While not expressing views on these bills, the NRC believes the
. Federal tax laws should not serve as a diencentive to employees who would otherwise come forward with health and safety concerns. However, the NRC's mandate necessarily gives it a limited perspective on these generic tax issues and we are not in 'a position to endorse particular legislative proposals. Nonethe'ese, the NGO b;ll eves that the leeese yee re:ee Jearrant eene:desaf,en by the Oengrese.
Thank you for bringing our attention to this matter.
Sincerely, Ohir:ey Ann Jeekeen Greta Jo'y Dicus 4