Filing Returns

This section discusses the special procedures for military personnel when filing federal tax returns. For information on filing returns for those involved in a combat zone, see Extension of Deadline, later.

Where To File

Send your federal tax return to the Internal Revenue Service center for the place where you live. For example, Sgt. Kane, who is stationed in Maine but whose permanent home address is in California, should send her federal return to the service center for Maine. The instructions for Forms 1040, 1040A, and 1040EZ give the addresses for the service centers. If you are overseas and have an APO or FPO address, file your return with the Internal Revenue Service Center, Philadelphia, PA 19255-0215.

When To File

Most individual tax returns cover a calendar year, January through December. The regular due date for these tax returns is April 15 of the following year. If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. For 2002 tax returns, the due date is April 15, 2003.

Extensions

You can receive an extension of time to file your return. Different rules apply depending on whether you live inside or outside the United States.

Inside the United States.   You can receive an automatic 4-month extension to file your return if by the regular due date you do any of the following.

• File a paper Form 4868.
• File Form 4868 by phone or over the Internet through one of the service providers listed in the instructions for Form 4868.
• Pay part or all of your estimate of income tax due electronically by using a credit card or by authorizing an electronic funds withdrawal from your checking or savings account. (If you use one of these options, you do not have to file Form 4868.)

The extension of time to file is automatic, and you will not receive any notice of approval. However, your request for an extension will be denied if it is not made timely. The IRS will inform you of the denial.

You cannot use the automatic extension if you choose to have IRS figure the tax or you are under a court order to file your return by the regular due date.

Payment of tax.   An extension of time to file does not mean you have an extension of time to pay any tax due. You must estimate your tax due. You do not have to send in any payment of tax due when you file Form 4868. However, if you pay the tax after the regular due date, you will be charged interest from the regular due date to the date the tax is paid. You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due.

If you file Form 4868 electronically, you can make your tax payment by authorizing an electronic funds withdrawal (direct debit) from your checking or savings account or by using a credit card.

For more details on how to pay the tax due, see the Form 4868 instructions.

When you file your return.   Enter the amount you paid on line 67, Form 1040. On Form 1040A, include the amount in the total on line 43. On Form 1040EZ, include the amount in the total on line 9. To the left of line 43 or line 9, enter Form 4868 and show the amount paid.

Outside the United States and Puerto Rico.   If you are a U.S. citizen or resident alien, you can qualify for an automatic extension of time until June 15 without filing Form 4868 (or making a payment) if either of the following situations applies to you.

1. You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or
2. You are in military or naval service on an assigned tour of duty outside the United States and Puerto Rico for a period that includes the entire due date of the return.

You will be charged interest on any amount not paid by the regular due date until the date the tax is paid.

If you use this automatic extension, you must attach a statement to the return showing that you met the requirement.

You can request an additional 2-month extension to file by August 15, 2003 by filing a paper Form 4868 by June 16, 2003, for a 2002 calendar year tax return. Write Taxpayer Abroad across the top of Form 4868.

Joint returns.   For married persons filing a joint return, only one spouse needs to meet the requirements to take advantage of the automatic extension to June 15.

Separate returns.   For married persons filing separate returns, only the spouse who meets the requirements qualifies for the automatic extension to June 15.

Additional extension beyond August 15.   You can request an extension beyond the 4-month extension by filing Form 2688 or by writing a letter to the IRS. Except in undue hardship cases, this additional extension will be granted only if Form 4868 has already been filed. Form 2688 or your letter will not be considered if it is filed after the extended due date. If you file Form 2688 and are granted an extension and the IRS discovers that the information you gave was false or misleading, the extension is void. You may then be subject to a penalty for filing late.

If you are unable to pay the tax owed by the end of the extension period, you may want to file Form 9465 to arrange an installment payment agreement with the IRS that reflects your ability to pay the tax owed.

Signing Returns

Generally, you must sign your return. However, if you are overseas or incapacitated, you can grant a power of attorney to an agent to file and sign your return.

A power of attorney can be granted by filing Form 2848. These forms are available at your nearest legal assistance office. While other power of attorney forms may be used, they must contain the information required by Form 2848.

In Part I of the form, you must indicate that you are granting the power to sign the return, the tax form number, and the tax year for which the form is being filed. Attach the power of attorney to the tax return. If you are acting on behalf of someone serving in a combat zone, see Filing Returns for Combat Zone/Qualified Hazardous Duty Area Participants, later.

Joint returns.   Generally, joint returns must be signed by both spouses. However, when a spouse is overseas, in a combat zone or qualified hazardous duty area, in a missing status, incapacitated, or deceased, a power of attorney may be needed to file a joint return.

Spouse overseas.   If one spouse is overseas on military duty, there are two options when filing a joint return. One spouse can prepare the return, sign it, and send it to the other spouse to sign early enough so that it can be filed by the due date. Or, the spouse who expects to be overseas on the due date of the return can file Form 2848 specifically designating that the spouse who remains in the United States can sign the return for the absent spouse.

Spouse in combat zone/qualified hazardous duty area.   If your spouse is unable to sign the return because he or she is serving in a combat zone/qualified hazardous duty area or is performing qualifying service outside of a combat zone/qualified hazardous duty area, such as Afghanistan, the Persian Gulf Area, or Yugoslavia, or a qualified hazardous duty area (Bosnia and Herzegovina, Croatia, and Macedonia), and you do not have a power of attorney or other statement, you can sign for your spouse. Attach a signed statement to your return that explains that your spouse is serving in a combat zone.

Spouse in missing status.   The spouse of a member of the Armed Forces who is in a missing status in a combat zone can still file a joint return. A joint return can be filed for any year beginning not more than 2 years after the end of the combat zone activities. A joint return filed under these conditions is valid even if it is later determined that the missing spouse died before the year covered by the return.

Spouse incapacitated.   If your spouse cannot sign because of disease or injury and he or she tells you to sign, you can sign your spouse's name in the proper space on the return, followed by the words by [your name], Husband (or Wife). Be sure to sign your name in the space provided for your signature. Attach a dated statement, signed by you, to your return. The statement should include the form number of the return you are filing, the tax year, the reason your spouse could not sign, and that your spouse has agreed to your signing for him or her.

Spouse died during the year.   If one spouse died during the year and the surviving spouse did not remarry before the end of the year, the surviving spouse can file a joint return for that year writing in the signature area Filing as surviving spouse. If an executor or administrator has been appointed, both he or she and the surviving spouse must sign the return filed for the decedent.

Refunds

In general, military personnel follow the same rules as other taxpayers concerning tax refunds. See your tax form instructions for information on what to do if you do not receive an expected refund and how to call to check on your refund status.

Use Form 8822 to notify the IRS if you move or change your address after filing your return. See How To Get Tax Help, near the end of this publication for information about getting this form.

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.

Combat Zone/Qualified Hazardous Duty Area 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 Afghanistan area combat zone, 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 extended also 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 3½ months (January 1 - April 15, 2002) to file your 2001 tax return. Any days of this 31/2 month period that were left when you entered the combat zone (or the entire 3½ months if you entered the combat zone by January 1, 2002) are added to the 180 days when determining the last day allowed for filing your 2001 tax return.

Example 1.   Captain Margaret Jones entered Saudi Arabia on December 1, 2000. She remained there through March 31, 2002, 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' 2000, 2001, and 2002 returns are figured as follows.

• The 2000 tax return. The deadline is January 10, 2003. This deadline is 285 days (180 plus 105) after Captain Jones' last day in the combat zone (March 31, 2002). The 105 additional days are the number of days in the 3½ month filing period that were left when she entered the combat zone (January 1 - April 15, 2001).
• The 2001 tax return. The deadline is January 10, 2003. The deadline is 285 days (180 plus 105) after Capt. Jones' last day in the combat zone (March 31, 2002).
• The 2002 tax return. The deadline is not extended because the 180-day extension period after March 31, 2002, ends on September 27, 2002, which is before the start of the filing period for her 2002 return (January 1 - April 15, 2003).

Example 2.   Petty Officer Leonard Brown's ship entered the Persian Gulf on January 5, 2001. On February 15, 2001, Leonard was injured and was flown to a U.S. hospital. He remained in the hospital through April 20, 2002. The deadlines for filing Petty Officer Brown's 2000, 2001, and 2002 returns are figured as follows.

• The 2000 tax return. The deadline is January 27, 2003. Petty Officer Brown has 281 days (180 plus 101) after his last day in the hospital (April 21, 2002) to file his 2000 return. The 101 additional days are the number of days in the 3½ month filing period that were left when he entered the combat zone (January 5 - April 15, 2001).
• The 2001 tax return. The deadline is January 31, 2003. Petty Officer Brown has 285 days (180 plus 105) after April 21, 2002, to file his 2001 tax return. The 105 additional days are the number of days in the 2002 filing period that were left when he entered the combat zone.
• The 2002 tax return. The deadline is not extended because the 180-day extension period after April 21, 2002, ends on October 18, 2002, which is before the start of the filing period for his 2002 return (January 1 - April 15, 2003).

Example 3.   You generally have 3 years from April 15, 1999, to file a claim for refund against your timely filed 1998 tax return. This means that your claim normally must be filed by April 15, 2002. However, if you served in a combat zone from November 1, 2001, through March 23, 2002, and were not injured, your deadline for filing that claim is extended 346 days (180 plus 166) after you leave the combat zone. This extends your deadline to March 4, 2003. The 166 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, 2001 - April 15, 2002).

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 still may 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 2002 return is due by the regular due date, April 15, 2003 (June 16, 2003, 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.

How To Get Tax Help

You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. By selecting the method that is best for you, you will have quick and easy access to tax help.

Contacting Your Taxpayer Advocate.   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate.

The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.

To contact your Taxpayer Advocate:

• Call the Taxpayer Advocate at 1-877-777-4778.
• Call, write, or fax the Taxpayer Advocate office in your area.
• Call 1-800-829-4059 if you are a TTY/TDD user.

For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS.

Free tax services.   To find out what services are available, get Publication 910, Guide to Free Tax Services. It contains a list of free tax publications and an index of tax topics. It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics.

Personal computer. With your personal computer and modem, you can access the IRS on the Internet at www.irs.gov. While visiting our web site, you can:

• See answers to frequently asked tax questions or request help by e-mail.
• Download forms and publications or search for forms and publications by topic or keyword.
• Order IRS products on-line.
• View forms that may be filled in electronically, print the completed form, and then save the form for recordkeeping.
• View Internal Revenue Bulletins published in the last few years.
• Search regulations and the Internal Revenue Code.
• Receive our electronic newsletters on hot tax issues and news.
• Learn about the benefits of filing electronically (IRS e-file).
• Get information on starting and operating a small business.

You can also reach us with your computer using File Transfer Protocol at ftp.irs.gov.

TaxFax Service. Using the phone attached to your fax machine, you can receive forms and instructions by calling 703-368-9694. Follow the directions from the prompts. When you order forms, enter the catalog number for the form you need. The items you request will be faxed to you.

For help with transmission problems, call the FedWorld Help Desk at 703-487-4608.

Phone. Many services are available by phone.

• Ordering forms, instructions, and publications. Call 1-800-829-3676 to order current and prior year forms, instructions, and publications.
• Asking tax questions. Call the IRS with your tax questions at 1-800-829-1040.
• Solving problems. Take advantage of Everyday Tax Solutions service by calling your local IRS office to set up an in-person appointment at your convenience. Check your local directory assistance or www.irs.gov for the numbers.
• TTY/TDD equipment. If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications.
• TeleTax topics. Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics.

Evaluating the quality of our telephone services. To ensure that IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. One method is for a second IRS representative to sometimes listen in on or record telephone calls. Another is to ask some callers to complete a short survey at the end of the call.

Walk-in. Many products and services are available on a walk-in basis.

• Products. You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Some IRS offices, libraries, grocery stores, copy centers, city and county governments, credit unions, and office supply stores have an extensive collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes.
• Services. You can walk in to your local IRS office to ask tax questions or get help with a tax problem. Now you can set up an appointment by calling your local IRS office number and, at the prompt, leaving a message requesting Everyday Tax Solutions help. A representative will call you back within 2 business days to schedule an in-person appointment at your convenience.

Mail. You can send your order for forms, instructions, and publications to the Distribution Center nearest to you and receive a response within 10 workdays after your request is received. Find the address that applies to your part of the country.

• Western part of U.S.:
  Western Area Distribution Center
  Rancho Cordova, CA 95743-0001
• Central part of U.S.:
  Central Area Distribution Center
  P.O. Box 8903
  Bloomington, IL 61702-8903
• Eastern part of U.S. and foreign addresses:
  Eastern Area Distribution Center
  P.O. Box 85074
  Richmond, VA 23261-5074

CD-ROM for tax products. You can order IRS Publication 1796, Federal Tax Products on CD-ROM, and obtain:

• Current tax forms, instructions, and publications.
• Prior-year tax forms and instructions.
• Popular tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping.
• Internal Revenue Bulletins.

The CD-ROM can be purchased from National Technical Information Service (NTIS) by calling 1-877-233-6767 or on the Internet at http://www.irs.gov/cdorders. The first release is available in early January and the final release is available in late February.

CD-ROM for small businesses. IRS Publication 3207, Small Business Resource Guide, is a must for every small business owner or any taxpayer about to start a business. This handy, interactive CD contains all the business tax forms, instructions and publications needed to successfully manage a business. In addition, the CD provides an abundance of other helpful information, such as how to prepare a business plan, finding financing for your business, and much more. The design of the CD makes finding information easy and quick and incorporates file formats and browsers that can be run on virtually any desktop or laptop computer.

It is available in March. You can get a free copy by calling 1-800-829-3676 or by visiting the website at www.irs.gov/smallbiz.

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