Publication 3 |
2000 Tax Year |
Extension of Deadline
Certain periods of time are disregarded when determining whether
certain tax matters have been taken care of on time. For ease of
understanding, this publication refers to these provisions as
"extensions of deadlines." These deadline extensions should not
be confused with other parts of the tax law that refer to extensions
of time for performing acts.
Extension.
The deadline for filing tax returns, paying taxes, filing claims
for refund, and taking other actions with the IRS is automatically
extended if you serve in the Armed Forces in a combat zone/qualified
hazardous duty area, or have qualifying service outside of a combat
zone/qualified hazardous duty area. See Qualifying service
outside combat zone, earlier. Additionally, if you are deployed
overseas away from your permanent duty station in support of
operations in a qualified hazardous duty area, but outside the
qualified hazardous duty area, you also receive these extensions (but
not other combat zone benefits). The deadline for IRS to take certain
actions, such as collection and examination actions, is also extended.
See Combat Zone, earlier, for the beginning dates for the
Kosovo area combat zone, the Persian Gulf area combat zone, and the
qualified hazardous duty areas.
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/qualified hazardous
duty area or have qualifying service outside of the combat
zone/qualified hazardous duty area (or the last day the area qualifies
as a combat zone or qualified hazardous duty area), or
- The last day of any continuous qualified hospitalization
(defined later) for injury from service in the combat zone/qualified
hazardous duty area or while performing qualifying service outside of
the combat zone/qualified hazardous duty area.
In addition to the 180 days, your deadline is also extended by the
number of days that were left for you to take the action with the IRS
when you entered a combat zone/qualified hazardous duty area (or began
performing qualifying service outside the combat zone/qualified
hazardous duty area). If you entered the combat zone/qualified
hazardous duty area (or began performing qualifying service outside
the combat zone/qualified hazardous duty area) before the period of
time to take the action began, your deadline is extended by the entire
period of time you have to take the action. For example, you had 3 1/2 months (January 1 - April 15, 2000) to file your
1999 tax return. Any days of this 3 1/2 month period that
were left when you entered the combat zone (or the entire 3 1/2 months if you entered the combat zone by January 1) are added
to the 180 days when determining the last day allowed for filing your
1999 tax return.
Example 1.
Captain Margaret Jones entered Saudi Arabia on December 1, 1998.
She remained there through March 31, 2000, when she departed for the
United States. She was not injured and did not return to the combat
zone. The deadlines for filing Captain Jones' 1998, 1999, and 2000
returns are figured as follows.
- The 1998 tax return deadline is January 10, 2001.
This deadline is 285 days (180 plus 105) after Captain Jones' last day
in the combat zone (March 31, 2000). The 105 additional days are the
number of days in the 3 1/2 month filing period that were
left when she entered the combat zone (January 1 - April 15,
1999).
- The 1999 tax return deadline is January 11, 2001.
The deadline is 286 days (180 plus 106) after Capt. Jones' last day in
the combat zone (March 31, 2000).
- The 2000 tax return deadline is not extended
because the 180-day extension period after March 31, 2000, ends on
September 27, 2000, which is before the start of the filing period for
her 2000 return (January 1 - April 16, 2001).
Example 2.
Petty Officer Leonard Brown's ship entered the Persian Gulf on
January 5, 1999. On February 15, 1999, Leonard was injured and was
flown to a U.S. hospital. He remained in the hospital through April
21, 2000. The deadlines for filing Petty Officer Brown's 1998, 1999,
and 2000 returns are figured as follows.
- The 1998 tax return deadline is January 29, 2001.
Petty Officer Brown has 281 days (180 plus 101) after his last day in
the hospital (April 21, 2000) to file his 1998 return. The 101
additional days are the number of days in the 3 1/2 month
filing period that were left when he entered the combat zone (January
5 - April 15, 1999). January 27, 2001, falls on a Saturday so
the return must be filed by January 29, 2001.
- The 1999 tax return deadline is February 1, 2001.
Petty Officer Brown has 286 days (180 plus 106) after April 21, 2000,
to file his 1999 tax return. The 106 additional days are the number of
days in the 2000 filing period that were left when he entered the
combat zone.
- The 2000 tax return deadline is not extended
because the 180-day extension period after April 21, 2000, ends on
October 18, 2000, which is before the start of the filing period for
his 2000 return (January 1 - April 16, 2001).
Example 3.
You generally have 3 years from April 15, 1997, to file a claim for
refund against your timely filed 1996 tax return. This means that your
claim normally must be filed by April 15, 2000. However, if you served
in a combat zone from November 1, 1999, through March 23, 2000, and
were not injured, your deadline for filing that claim is extended 347
days (180 plus 167) after you leave the combat zone. This extends your
deadline to March 5, 2001. The 167 additional days are the number of
days in the 3-year period for filing the refund claim that were left
when you entered the combat zone on November 1 (November 1, 1999
- April 15, 2000).
Missing status.
Time in a missing status (missing in action or prisoner of war)
counts as time in a combat zone or a qualified hazardous duty area.
Support personnel.
The deadline extension provision also applies if you are serving in
a combat zone or a qualified hazardous duty area in support of the
Armed Forces. This includes Red Cross personnel, accredited
correspondents, and civilian personnel acting under the direction of
the Armed Forces in support of those forces.
Qualified hospitalization.
The hospitalization must be the result of an injury received while
serving in a combat zone or a qualified hazardous duty area. Qualified
hospitalization means:
- Any hospitalization outside the United States, and
- Up to 5 years of hospitalization in the United
States.
Actions extended.
The actions to which the deadline extension provision applies
include:
- Filing any return of income, estate, or gift tax (except
employment and withholding taxes),
- Paying any income, estate, or gift tax (except employment
and withholding taxes),
- Filing a petition with the Tax Court for redetermination of
a deficiency, or for review of a Tax Court decision,
- Filing a claim for credit or refund of any tax,
- Bringing suit for any claim for credit or refund,
- Purchasing a replacement home to postpone paying tax on the
gain on the sale (before May 7, 1997) of your old home,
- Making a qualified retirement contribution to an IRA,
- Allowing a credit or refund of any tax by the IRS,
- Assessment of any tax by the IRS,
- Giving or making any notice or demand by the IRS for the
payment of any tax, or for any liability for any tax,
- Collection by the IRS of any tax due, and
- Bringing suit by the United States for any tax due.
If the IRS takes any actions covered by these provisions or sends
you a notice of examination before learning that you are entitled to
an extension of the deadline, contact your legal assistance office. No
penalties or interest will be imposed for failure to file a return or
pay taxes during the extension period.
Even though the deadline is extended, you may want to file a return
earlier to receive any refund due. See Filing Returns,
earlier.
Spouses.
Spouses of individuals who served in a combat zone are entitled to
the same deadline extension with two exceptions.
- The extension does not apply to a spouse for any tax year
beginning more than 2 years after the date the area ceases to be a
combat zone.
- The extension does not apply to a spouse for any period the
qualifying individual is hospitalized in the United States for
injuries incurred in a combat zone.
Not in a combat zone.
If you are a reservist called to active duty or a regular military
member but are not in a combat zone, you may still qualify to defer
the payment of back taxes. To qualify, you must be serving your
initial period of service, and you must show that your ability to pay
the back taxes has been materially impaired.
Initial period of service.
The initial period of service is defined as the period of active
duty following recall to active duty from an inactive reserve or
National Guard unit. For regular military personnel, it is the period
following induction or first enlistment in the Armed Forces or the
first period of reenlistment for a person who has been out of the
service for a year or more. For an officer, the initial period of
service is limited to two years of active service after one of the
above occurrences.
Material impairment.
To indicate material impairment, you must show that your income
dropped as a result of going into military service.
Request for deferment.
If you have a current payment agreement, you must make a written
request for deferment to the IRS office where you have the agreement.
If you have received a notice requesting payment, you must make a
written request for deferment to the IRS office that issued the
notice.
If you do not have a current payment agreement, you must wait until
you receive a notice asking for payment before you request a deferral.
Your request must include your name, social security number,
monthly income and source of income before military service, current
monthly income, military rank, date you entered military service, and
date you are eligible for discharge. If possible, enclosing a copy of
your orders would be helpful.
The IRS will review your request and advise you in writing of its
decision. Should you need further assistance, you can call the IRS at
1-800-829-1040 to discuss your situation.
If your request for deferment is granted by the IRS, you will be
able to defer payment of back taxes until 6 months after the end of
your initial period of service.
Maximum rate of interest.
Section 526 of the Soldiers' and Sailors' Relief Act limits the
maximum interest rate you can be charged to 6% per year for
obligations or liabilities incurred before your entry into active
service. The reduced rate applies only if your service materially
affects your ability to pay. This rate applies only to that interest
charged during the period of your active duty.
To substantiate your claim for this reduced interest rate, you must
furnish the IRS a copy of your orders or reporting instructions that
detail the call to active duty.
Filing Returns for Combat Zone/ Qualified Hazardous Duty Area
Participants
You can choose to file your return before the end of your extension
period. File your return in accordance with instructions provided by
the Armed Forces.
If you are acting on behalf of someone serving in a combat
zone/qualified hazardous duty area and you do not have a power of
attorney from that person specifying that you can handle federal tax
matters, the IRS will accept a general power of attorney or other
statement signed by that person that authorizes you to act on his or
her behalf. A copy must be attached to the tax return.
If it is not possible for the spouse of someone serving in a combat
zone/qualified hazardous duty area to obtain that person's signature
on a joint return, power of attorney form, or other signed
authorization to act on his or her behalf, the IRS will accept a
written statement explaining that the husband or wife is serving in a
combat zone/qualified hazardous duty area. The statement must be
signed by the spouse filing the tax return and attached to the return.
Outside the combat zone/qualified hazardous duty area.
If you do not qualify for the deadline extension provision, your
2000 return is due by the regular due date, April 16, 2001 (June 15,
2001, if you are stationed outside the United States and Puerto Rico
on April 15). Interest on any unpaid tax will be charged from April
15.
There are other provisions that extend the time for filing your
return. See Extensions, earlier.
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