ML20210P620
| ML20210P620 | |
| Person / Time | |
|---|---|
| Issue date: | 07/13/1999 |
| From: | Merrifield J NRC COMMISSION (OCM) |
| To: | Cyr K NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| References | |
| COMSECY-99-020, NUDOCS 9908130043 | |
| Download: ML20210P620 (3) | |
Text
RE(10EST REPLY.BLMk A MYug UNITED STATES o,,
NUCLEAR REGULATORY COMMISSIO61 RELEASED TO THE DDR I
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]Q alD June 25, 1999 OFFICE oF THE GENERAL counsel COMSECY-99-020 MEMORANDUM TO:
Chairman Jackson fd Sg6-Commissioner Dicus ff Commissioner Diaz Commissioncr McGaffigan g
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(oud-FROM:
Karen D. Cyr h D, General Couns
SUBJECT:
NRC RESPONSE TO REQUEST FOR SUPPpd[F FEDERAL TAX RELIEF FOR WHISTLEBLOWERS 7g The purpose of this memorandum is to seek Commission approval 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 fileo tvith the Department of Labor under section 211 of the Energy Reorganization Act, as l
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 to be paid directly to his law firm by the employer. Mr. Doyle's letter states his concern about the Federal tax treatment of these amounts under current law, which could result in loss of most 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.
Prior to 1996, the IRC excluded from the income tax personal injury damages for both physical and nonphysical harm. The Small Business Job Protection Act of 1996 ("1996 Act") amended CONTACT:
Brooke D. Poole, OGC (301) 415-2490 t
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9908130043 990713 PDR COMMS NRCC CORRESPONDENCE PDR
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- Mr. Shannon T. Doyle l
3762 West Cook Road j
Dothan, AL 36301-i
Dear Mr. Doyle:
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," which was introduced in the 105* Congress. As you know, on May 27,1999, Representative Pryce j
introduced H.R.1997, the " Civil Rights Tax Fairness Act of 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 of unlawful discrimination claims, in areas well beyond the purview of the whistleblower protections of section 211. While not expressing views on these bills, the NRC believes the Federal tax laws should not serve as a disincentive to employees who would otherwise come Iforward with health and safety conce% 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 proposdis. Nonetheless, the NRC believes that the issues you raise warrant consideration by the Congress.
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Thank you for bringing our attention to this matter.
Sincerely, ggf 6' ShMey ^- MMe^
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l l-COMMISSIONER MERRIFIELD'S COMMENTS ON COMSECY-99-020 I approve sending the attached letter subject to one edit. I agree with OGC's suggestion to forward copies of the Doyle letter to the Department of the Treasury, the Department of Labor, and the Office of Management and Budget. In the cover letter to these agencies I suggest reiterating the Commission's concern with any disincentive to employees to report health and safety concerns. I also recommend that we send a copy of ("cc") the Doyle letter to the Senate Environment and Public Works Committee, and Finance Committee, as well as the House Commerce and Ways and Means Committee.
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