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COMBAT ZONE ISSUES
America has a tradition of respect for those who stand "In
Harm's Way" in service to the country. Tax law includes some
favorable provisions.
Who? Tax relief is offered not only to uniformed service
members, but to support personnel. This can include Red
Cross workers, correspondents, and civilian support, personnel
acting under direction of the Armed Forces.
Where? Combat zones include the Persian Gulf,
Bosnia/Herzegovina, the Kosova area, and Afghanistan.
Combat Pay Exclusion. If you served in a combat zone, your
W-2 does not include pay received during this time. There are
special rules for Officer's pay, re-enlistment bonuses, and other
items.
Due Date Relief. Military and support personnel have
automatic extensions to file returns, pay taxes, protest audits or
collection activity, and file amended retruns. Extensions run for
the greater of the time spent in the combat zone or
hospitalization form injury in the zone, or 180 days.
Death in a Combat Zone. If an Armed Forces member dies in
active service or from injury sustained in a combat zone, taxes
are completely forgiven for the current year, and for the three
prior years. This can also apply to certain civilian employees.
How To Get The Benefits. IRS has set up a special email
address for those who believe they are entitled to any of these
benefits. You may submit your name, address, date of birth,
and date of deployment to the address combatzone@irs.gov.
Additional Information. The IRS's website has a thorough
section on this topic. It is easy to use, and the information is
clear and easy to understand. The site is www.irs.gov. Look for
the section "Armed Forces Tax Benefits".
Santos Associates, FEDERALLY AUTHORIZED TAX
PRACTITIONERS, can help you with your accounting, tax
and financial planning needs. Call today for an appointment &
consultation. We are not attorneys, we can refer competent council
upon request.
