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“(a) In General.—Not later than 1 year after the date of the enactment of this Act [Dec. 16, 2016], the Secretary of Defense shall—“(1) identify—“(A) the severance payments—“(i) that the Secretary paid after January 17, 1991; “(ii) that the Secretary computed under section 1212 of title 10, United States Code; “(iii) that were not considered gross income pursuant to section 104(a)(4) of the Internal Revenue Code of 1986 [26 U.S.C. 104(a)(4)]; and “(iv) from which the Secretary withheld amounts for tax purposes; and “(B) the individuals to whom such severance payments were made; and “(2) with respect to each person identified under paragraph (1)(B), provide—“(A) notice of—“(i) the amount of severance payments in paragraph (1)(A) which were improperly withheld for tax purposes; and “(ii) such other information determined to be necessary by the Secretary of the Treasury to carry out the purposes of this section; and “(B) instructions for filing amended tax returns to recover the amounts improperly withheld for tax purposes. “(b) Extension of Limitation on Time for Credit or Refund.—“(1) Period for filing claim.—If a claim for credit or refund under section 6511(a) of the Internal Revenue Code of 1986 [26 U.S.C. 6511(a)] relates to a specified overpayment, the 3-year period of limitation prescribed by such subsection shall not expire before the date which is 1 year after the date the information return described in subsection (a)(2) is provided. The allowable amount of credit or refund of a specified overpayment shall be determined without regard to the amount of tax paid within the period provided in section 6511(b)(2) [26 U.S.C. 6511(b)(2)]. “(2) Specified overpayment.—For purposes of paragraph (1), the term ‘specified overpayment’ means an overpayment attributable to a severance payment described in subsection (a)(1).

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