Tax Filing Deadlines Unaffected By Recent Tragic Events In Japan
From Judge Advocate General’s Corps

Service members participating in, or in support of, contingency operations overseas receive an automatic extension to file tax returns and pay any tax they may owe. The extension for contingency operations is 180 days after the last day the individual serves in the contingency operation plus the number of days remaining for the individual to file when he or she began serving in the contingency operation. At this time, Operation Tomodachi does not fit the definition of a contingency operation. Therefore, these individuals will need to rely on existing Internal Revenue Service (IRS) extensions if they require more time to file their tax returns.

Personnel assigned overseas, including Japan, receive an automatic two-month extension to June 15 to file and pay their 2010 income taxes. This extension is automatic for service members on an assigned tour outside the United States and Puerto Rico on April 18. This extension also applies to U.S. citizens or resident aliens who live outside the United States and Puerto Rico whose main place of business or post of duty is outside the United States or Puerto Rico. Overseas personnel and dependents who return to the United States before April 18 April on a temporary basis, including those who evacuated Japan, qualify for the automatic two-month extension because they are still considered to be assigned overseas so long as they are not reassigned to the United States.

As a reminder, this automatic two-month extension is for filing and paying only, so taxpayers who owe taxes and will not have a refund from the IRS, will be charged interest on any unpaid amounts beginning April 18.

However, they will not be charged a late payment penalty or a late filing penalty. Personnel who are married and file a joint return need only one spouse to qualify for both to use the extension. If filing separately, each spouse must separately qualify as living overseas to use the extension. To use this automatic extension if filing after April 18, you must attach a statement to your return explaining which situation qualifies you for the extension. If you file at a military VITA center, the tax preparer can enter the overseas extension explanation on your electronic return.

Even if not assigned overseas, personnel who are participating in Operation Tomodachi or other operations which are not designated contingency operations and not in a combat zone will receive an automatic two-month extension until June 15 to file their 2010 income taxes if they are outside of the United States or Puerto Rico on April 18. If these individuals return to the U.S. before April 18, they must file their tax return by April 18 to avoid being charged interest on any amount they owe or any penalties for late payment.

Taxpayers who require additional time to file their return may file IRS Form 4868 to request an extension until Oct. 17. In order to qualify for this extension, Form 4868 must be filed by the regular due date of the return, which is April 18 for taxpayers in the United States or June 15 for those who are overseas. Be sure to check the box on line 8 for the full additional time to file. Taxpayers who take this automatic extension will still be charged interest on any amount they owe that is not paid by the April 18 due date until the date the tax is paid. A late payment penalty and a late filing penalty is normally also charged, unless the taxpayer can show reasonable cause for not paying on time. Taxpayers should attach a statement to their return explaining the reason.

Spouses of individuals who served in a combat zone or a contingency operation 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 two years after the date the area ceases to be a combat zone or the operation ceases to be a contingency operation.

• The extension does not apply to a spouse for any period the qualifying individual is hospitalized in the United States for injuries sustained in a combat zone or a contingency operation.

Eligible individuals can receive tax filing information and assistance at Volunteer Income Tax Assistance (VITA) Program/Electronic Filing (ELF) centers. In addition to preparing and filing 2010 tax returns, these centers can also submit Form 4868 electronically. A list of U.S. Navy VITA centers is available online by accessing the U.S. Navy JAG website at: http://www.jag.navy.mil/organization/code_16_tax_info.htm.

For more information, please see IRS Publication 3, the Armed Forces Tax Guide at: http://www.irs.gov/pub/irs-pdf/p3.pdf. Those wishing to download Form 4868 may do so from the IRS website at: http://www.irs.gov/pub/irs-pdf/f4868.pdf.