Tax Tips

The deadline for filing tax returns, paying taxes, filing claims for refund, and taking other actions with the IRS is automatically extended if any of the following statements is true.

• You serve in the Armed Forces in a combat zone or you have qualifying service outside of a combat zone.
• You serve in the Armed Forces in a qualified hazardous duty area or are deployed overseas away from your permanent duty station in support of operations in a qualified hazardous duty area (even if your deployment station is outside the qualified hazardous duty area).
• You serve in the Armed Forces on deployment outside the U.S. away from your permanent duty station while participating in a contingency operation (a military operation that is designated by the Secretary of Defense or results in calling or retaining members of the uniformed services to active duty during a war or a national emergency declared by the President or Congress.

The period of time you are missing in action or a prisoner of war counts as time in a combat zone or a contingency operation.

Deadlines are also extended if you are serving in a combat zone or a contingency operation in support of the Armed Forces. This applies to Red Cross personnel, accredited correspondents and civilian personnel acting under the direction of the Armed Forces in support of those forces.

Even though the deadline is extended, you may want to file a return earlier to receive any refund due.

Spouses

Spouses of individuals who served in a combat zone or contingency operation are entitled to the same deadline extensions with 2 exceptions:

• The extension doesn't apply to a spouse for any tax year beginning more than 2 years after the date the area is no longer a combat zone or the operation is no longer a contingency operation.
• The extension doesn't apply to a spouse for any period the qualifying individual is hospitalized in the U.S. for injuries incurred in a combat zone or contingency operation.

Length of Extension

Your deadline for taking actions with the IRS is extended for 180 days after the later of:

• The last day you are in a combat zone, have qualifying service outside of the combat zone, or serve in a contingency operation (or the last day the area qualifies as a combat zone or the operation qualifies as a contingency operation).
• The last day of any continuous qualified hospitalization for injury from service in the combat zone or contingency operation or while performing qualifying service outside of the combat zone.

In addition to the 180 days, your deadline is extended by the number of days that were left for you to take the action with the IRS when you entered a combat zone (or began performing qualifying service outside the combat zone) or began serving in a contingency operation. For example, you had 3½ months (Jan. 1–April 15, 2009) to file your 2008 tax return. Any days of this 3½ month period that were left when you entered the combat zone (or the entire 3½ months if you entered the combat zone by Jan. 1, 2009) are added to the 180 days when determining the last day allowed for filing your 2008 tax return.

Deferral of Payment

You may qualify to delay payment of income tax that becomes due before or during your military service. To qualify:

• You must be performing military service.
• You must notify the IRS that your ability to pay the income tax has been materially affected by your military service.

You will then be allowed up to 180 days after termination or release from military service to pay the tax. If you pay the tax in full by the end of the deferral period, you will not be charged interest or penalty for that period. This exception does not apply to the employee's share of Social Security and Medicare taxes.