(California) Lawmakers aim to fix rule keeping funds from firefighters' kin

[deadparrot]

WASHINGTON – California lawmakers are pursuing a legislative fix to the Internal Revenue Service problem that's keeping more than $1 million in donations from the families of five dead firefighters.

Bills being introduced in the House and Senate Friday would allow the Central County United Way to hand out the money even though the organization was not supposed to raise it under IRS rules. The rules prevent tax-exempt charitable organizations from raising money to benefit individuals, so the United Way risked losing its tax exempt status if it gave out the money.

The Hemet group handled the money at the request of Riverside County as donations started pouring in after the arson blaze that killed the U.S. Forest Service firefighters in October.

The legislation is written to apply specifically to the case of the firefighters' families. It was being introduced in the Senate by Democratic Sens. Dianne Feinstein and Barbara Boxer, and in the House by GOP Reps. Mary Bono, Ken Calvert and Jerry Lewis, who represent the area.

http://www.signonsandiego.com/news/state/20061208-1735-ca-arson-firefighterskilled.html