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Article added or updated:
01/06/2008 |
Deferral of Back Taxes for Military
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Added:2/02/2006
IRS Tax Tip 2006-39
Reservists called to active duty and enlistees in the armed forces may
qualify for a deferral of taxes owed if they can show that their ability
to pay taxes was affected by their military service.
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The Service members Civil Relief Act, which provides this benefit,
covers:
• Active duty members of the military services — Army, Navy, Air Force,
Marine Corps and Coast Guard
• Commissioned officers of the uniformed services, Public Health Service
and the National Oceanic and Atmospheric Administration.
• Reservists placed on active duty.
• National Guard personnel called to active duty by the president of the
United States
The deferral applies to taxes due before or during military service, and
extends the payment deadline to 180 days after the military service
ends. No interest or penalty accrues during the deferral period.
The taxpayer must apply for the deferral, as it is not automatic. When
applying, the taxpayer must show how the military service affected their
ability to pay. A taxpayer must also have received a notice of tax due,
or have an installment agreement with the IRS, before applying for the
deferral.
The deferral does not extend the deadline for filing any tax returns.
However, taxpayers in the armed forces may get extra time to file under
other provisions, such as being stationed overseas, in a combat zone, in
a qualified hazardous duty area, or if they are serving in direct
support of a combat zone.
Details of applying for the tax payment deferral and information on a
wide range of tax issues affecting members of the military are in IRS
Publication 3, Armed Forces’ Tax Guide, which is available on the IRS
Web site, IRS.gov, or by calling 1-800-TAX-FORM (1-800-829-3676).
Additional information on tax issues affecting the military, including
information on what areas are considered combat zones, can be found on
IRS.gov on the Individuals page under the Military tab.
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prior to acting on any advice found here. We do NOT dispense advice on
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