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Article added or updated:
09/05/2011 |
Military Tax Assistance
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| Article Added:02/02/06
IRS Provides Help to Get
Tax Assistance to Military Families;
New Web Page Created for U.S. Armed Services
IR-2003-43, April 3, 2003
WASHINGTON — The Internal Revenue Service has created a new section on
its Web site containing important information to help ensure members of
the U.S. Armed Forces serving in a combat zone get all of the tax
benefits available to them.
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The new section highlights several special tax provisions that apply to
those in combat, which can include extensions for filing tax returns and
paying taxes and exclusion of some military pay from taxes.
The new Web section includes:
* Questions and answers on exclusions, extensions and other tax benefits
available to members of the Armed Forces serving in a combat zone.
* Publication 3, Armed Forces’ Tax Guide, which covers the special tax
situations of active members of the U.S. Armed Forces.
* Several recent news releases and notices, including
Tax Tip 2003-41,
Reservists, New Enlistees May Get Deferral for Back Taxes; news release
IR-2002-18, Tax Relief for Troops in Afghanistan Combat Zone;
Notice
2002-17, Tax Relief for those Involved in Operation Enduring Freedom.
* A special e-mail address for members of the U.S. Armed Forces, their
spouses, authorized agents or representatives, which can be used to
notify the IRS about someone serving in a combat zone.
"At this important time, our dedicated military personnel in combat
zones should not be worried about tax issues," said IRS Acting
Commissioner Bob Wenzel. "We want each of them to receive all of the tax
benefits that they are entitled to. We want all of our servicemen and
servicewomen — and their families — to know that we are here to help."
Generally, enlistees up to warrant officers (including commissioned
warrant officers) exclude all their military pay received for military
service in a combat zone. For commissioned officers, the monthly
exclusion is capped at the highest enlisted pay, plus any hostile fire
or imminent danger pay received. For 2002, this limit was $5,532.90 and
for 2003, it is $5,882.70. Amounts excluded from gross income are not
subject to federal income tax.
The IRS automatically extends the deadline for filing tax returns,
paying taxes, filing claims for refund and taking other actions related
to federal income tax for U.S. Armed Forces personnel serving in a
combat zone. The IRS also extends the deadline for those in the U.S.
Armed Forces deployed overseas away from their permanent duty station in
support of operations in a qualified hazardous duty area but who are
outside that area.
The deadline for filing returns, making payments or taking any other
action with the IRS is extended for at least 180 days after:
* The last day of qualifying combat zone service, or
* The last day of any continuous qualified hospitalization for injury
from the combat zone.
The IRS is currently working with the military to obtain information
about reservists and regular military personnel serving in combat areas.
During this interim period, people in the military, their spouses or
their authorized representatives have several options to claim the
filing extensions or filing exclusions:
* When filing returns, mark “Combat Zone” at the top of the form along
with the date of deployment.
* Contact the IRS through the special e-mail address at IRS.gov.
Correspondence should include the name, stateside address, date of
birth, and date of deployment of the service member. (No Social Security
numbers should be included in the e-mail.) The IRS emphasizes only
military-related e-mails should go to this address. Calls can also be
made to the main IRS help line at 800-829-1040.
These two steps also apply if a notice inadvertently goes to an
individual serving in a combat zone or his or her spouse. The notice can
be deferred by following the e-mail steps or by sending the notice back
to the IRS marked with the words “Combat Zone” and the date of
deployment.
The IRS plans to take additional steps and provide additional guidance
on issues involving military personnel and combat zones. This new
information will also be posted to the Armed Forces page on IRS.gov.
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