Sens. Steve Daines (R-MT) and Jon Tester (D-MT) reintroduced last week a bill designed to ensure injured first responders do not have to pay taxes on injury-related compensation.
The Putting First Responders First Act would clarify the current tax code and stems from the circumstance of the now-retired Billings police officer, Ladd Paulson, who was hit by an impaired driver in 2002 while he was conducting a routine traffic stop on his motorcycle.
The lawmakers said Paulson survived the near-death experience but was left with severe injuries. After the accident, the Internal Revenue Service (IRS) audited Paulson for five years in a row after he did not file taxes on treatment for his injuries and still receives letters from the IRS.
“Montana’s first responders risk their lives every day to protect our communities,” Daines said. “This legislation will ensure these brave men and women will no longer endure unfair taxes or audits from the IRS as a result of the sacrifices they have made for our safety.”
Tester echoed Daines’ sentiments regarding the measure.
“Montana’s first responders put themselves in harm’s way to keep our communities safe,” Tester said. “We have a responsibility to ensure that folks injured in the line of duty have full access to their disability payments. They shouldn’t have to pay for their sacrifices by being unreasonably taxed or audited by the IRS.”