The Internal Revenue Service, the one single federal agency that probably engenders more fear than any other, is backing down.

And it took the veterans of the American military to make it happen.

The American Legion is reporting on its website that a regulation which was costing that organization thousands of dollars, dozens of man-hours for compliance, and plenty of headaches, is being changed.

Throughout the summer 2013, a number of American Legion outposts were being visited by IRS agents and asked to provide a plethora of military forms known as a DD 214 form – or face a $1,000 per day fine.

A DD 214 form is the paperwork which accompanies a discharge from the military, and prior to this summer, American Legion outposts were only asked to provide these forms to the IRS in extraordinary circumstances.

The American Legion complained to Republican Jeff Murphy, head of the Veteran Affairs committee. After investigating the matter, Murphy noticed an obscure rule change in the IRS field manual, and he fired off a letter on August 28, 2013, to the head of the agency, complaining about the issue.

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