Reservists, Enlistees May Get Deferral of Back Taxes

>Combat Areas
The following areas of have been designated as
Reservists called to active duty and enlistees in thecombat areas.
armed forces may qualify for a deferral of taxes1. Afghanistan and the airspace above was designated
owed if they can show that their ability to pay taxesa combat zone effective Sept. 19, 2001.
was affected by their military service.2. The Federal Republic of Yugoslavia (Serbia
The deferral covers active duty members of theMontenegro)
military services — Army, Navy, Air Force, Marine3. Albania
Corps and Coast Guard — and commissioned4. Bosnia and Herzegovina
officers of the uniformed services — Public Health5. Croatia
Service and the National Oceanic and Atmospheric6. Macedonia
Administration. Reservists must be placed on active7. The Adriatic Sea
duty to qualify. National Guard personnel not serving in8. The Ionian Sea — north of the 39th parallel
a “federalized” status — that is, called to active9. The Persian Gulf
duty specifically by the president of the United States10. The Red Sea
— are not covered.11. The Gulf of Oman
The deferral applies to taxes that fall due before or12. The part of the Arabian Sea that is north of 10
during military service, and extends the paymentdegrees north latitude and west of 68 degrees east
deadline to six months (180 days) after the militarylongitude
service ends. No interest or penalty accrues during the13. The Gulf of Aden
deferral period.14. The total land areas of Bahrain, Iraq, Kuwait, Oman,
The deferral is not automatic. A taxpayer must applyQatar, Saudi Arabia and the United Arab Emirates
for it. When applying, the taxpayer must show how15. Incerlik Air Base in Turkey, effective Sept. 21, 2001
the military service affected the taxpayer's ability to16. Pakistan, Tajikistan and Jordan, effective Sept. 19,
pay. A taxpayer must also have received a notice of2001
tax due, or have an installment agreement with the17. Uzbekistan and Kyrgyzstan, effective Oct. 1, 2001
IRS, before applying for the deferral.18. The Philippines, effective Jan. 9, 2002
The deferral does not extend the deadline for filing any19. Yemen, effective April 10, 2002
tax returns. However, taxpayers in the armed forces20. Djibouti, effective July 1, 2002
may get extra time to file under other provisions, suchWhile deferring back taxes is a helpful notion, a better
as being stationed overseas, in a combat zone or in amethod would be simply to waive all taxes on military
qualified hazardous duty area, or if they are serving inpersonnel.
direct support of a combat zone.