COMDTINST 12550.21A
Payment Funding Authorization (enclosure (1)). The determinations in sections 6a and 6b above
are annotated by the Office of Civilian Personnel.
b. Auxiliary The Office of Auxiliary is responsible for preparing the paperwork required to
process the death gratuity payment and corresponding with the personal representative of the
estate. Action taken to process a claim is annotated on Form CG-6023 Death Gratuity Payment
Funding Authorization (enclosure (1)). The determinations in sections 6a and 6b are annotated
by the Office of the Auxiliary.
c. The funding authorization sheet will be forwarded to Human Resources Resource Management
Directorate for certification and payment by the civilian pay accounts manager.
8. TAX STATUS. The Internal Revenue Service (IRS) has ruled death gratuity payments made for
deaths occurring on or after 20 August 1996 are fully subject to Federal income tax. If the death
occurred earlier, a ,000 exclusion will generally apply. Further tax questions should be directed to
the recipient's tax consultant or the IRS.
9. REPORTING REQUIREMENTS. The Office of the Auxiliary and Office of Civilian Personnel will
prepare a report containing the following information:
a. Certification that records have been reviewed to identify cases eligible for a death gratuity
benefit;
b. Total number of cases identified;
c. The name of the deceased employee or member; date of death; approval or non-approval of the
death gratuity benefit and the basis for the decision; the amount of the gratuity paid; and the
approximate date the gratuity was/will be paid. This information must be provided for each case
identified; and,
d. Any issues or problems arising from the exercise of this authority, which may require policy or
procedural changes.
This report shall be prepared annually, by 30 September.
10. ENVIRONMENTAL ASPECT AND IMPACT CONSIDERATION. Environmental considerations
were examined in the development of this directive and have been determined to be not applicable.
11. FORMS AVAILABILITY. Death Gratuity Payment Funding Authorization, Coast Guard
Form 6023 (CG-6023), can be produced locally from this Instruction.
Thomas F. Fisher /s/
Acting Director of Personnel Management
Encl:
(1) Death Gratuity Payment Funding Authorization, Form CG-6023
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