At the end of 2017, service-disabled-veteran-owned businesses were privileged with special tax considerations. By filing the amended return, SDVOSBs may be eligible to claim a tax refund on several occasions. Recent political voices have made many veterans to rejoice at the arrival of this reform. Many veterans are about to benefit from the refund reform.
Out of 300,000, DoD’s officials identified only 133,000 veterans that may be eligible for a refund of federal taxes they paid on 1991, for disability severance. According to new estimates, these taxes should never have been collected.
The Defense Department will notify veterans who have the right to refund, by sending letters with all the details they need to know. Veterans need to wait one year after receiving the notice before filing a claim for the refund. This was said by the executive director of the Armed Forces Tax Council, David Dulaney.
These refunds, which are the result of a law passed in 2016, apply to veterans who received this pay dating back to Jan. 17, 1991, and for those who qualified for disability by the U.S. Department of Veterans Affairs.
This law passed in 2016 and went into effect last year. Therefore, these refunds will be returned to the veterans who have paid taxes in 1991, and those who are qualified for disability by the Veterans Department. It was estimated that these taxes were held inappropriately for some of the veterans who received the disability severance payment.
The eligibles will be provided with all the needed information about how to apply and claim the refund. A close collaboration between Defense Officials and Internal Revenue Service (IRS) officials will enable a simple and clarified process, stated Army Lt. Col. Dulaney. Furthermore, he added that the amount of tax will be different for each veteran, based on their rank and years of service.
The truth is that the Government has made many facilities for veterans and small businesses that are owned by former military services. But other businesses that belong to the set-aside socio-economic program also have many advantages.
Benefits of being a Veteran-Owned-Small-Business
Considering the ever-changing technology, resources, and the dynamic development of industries, the government constantly adjusts and grows in order to meet their demands. Being the largest consumer in the country, the government relies on its contractors to meet their requirements and objective.
Every business that provides services or products that might be required by the Government is eligible to enter the world of Federal Market. There are plenty opportunities to benefit from government contracts. Businesses owned by veterans are perfect competitors for these kinds of contracts given their experience in the government. Familiarity with the way federal agencies function and the military experience you hold on your shoulders, can serve you in the government procurement environment.
Competing Successfully for Prime Contracts
Regardless of the high demands for services like yours, competing for prime contracts is not that easy. It comprises a long process where you need to be prepared from the moment that you decide to pursue a contract.
Whether you’re competing as a sole contractor or in partnership with a mentor company, you must realize the complexity of Government procurements. Federal agencies follow a strict set of terms and conditions and other legal policies. That’s why you need to be aware of all details, and understand well all the requirements of the RFP you received.
Start your preparations early, way before you start your technical writing process; research, analyze and gain competitive advantage; build relationships with officers of the federal agency you’re interested to bid for; if possible, work with a partner; plan your budget, time and expenses thoroughly; develop a strategic plan to win.
Proposal writing for VOSB small businesses requires a well-designed, detailed strategy and people with experience. Success relies on diligence, effort, and commitment. Make sure you have these qualities apart your business capabilities!