Each year, the tax filing deadline creeps up on many Americans, whether they are true procrastinators or not. With this year’s filing deadline set for midnight on April 17, most filers will benefit from the two extra days, but others may still require even more time.
If you need to file for a tax extension, there are several requirements that you need to bear in mind, and some of these considerations relate to your military status.
The most important thing to remember when filing an extension is that you’re still required to complete paperwork and pay your tax burden to the IRS by midnight on April 17, 2007. Despite what many people think, an extension of time to file a tax return is not an extension of time to pay. Taxpayers who do not file by the April 17th deadline must file IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Tax Return) and pay their tax liability, if one is owed, to avoid penalties and interest.
Men and women serving in the military have additional considerations that depend on a variety of factors, including where they are stationed. For example, if you serve within the United States, you can file Form 4868 by April 17 to receive an automatic six month extension. Again, if you anticipate owing taxes, you must still make the payment by the tax filing deadline; filing an extension request does not extend your time to pay.
However, if you’re on an assigned tour of duty outside the United States or Puerto Rico on April 17, you can qualify for an automatic extension without filing Form 4868. Your new deadline for filing would be approximately two months later (on June 15, 2007). You must remember to attach a statement to the tax return when you file showing that you met the requirements for the extension.
If you live overseas and need more time beyond June 15, you can request an additional four month extension (to October 15) by writing "Taxpayer Abroad" across the top of Form 4868 and filing this document by June 15. Again, remember that these extensions pertain to filing the tax forms only; any balance due must be paid by April 17. Otherwise, you may be charged for interest and other penalties.
Other extensions are available for members of the military that serve in combat zones, qualified hazardous duty areas, or involved in contingency operations. Extensions are also available for Soldiers who have been hospitalized as a result of any of these duties. Those who serve in combat zones are entitled to an automatic extension for 180 days after leaving the combat zone. In addition, it is possible to increase the length of the extension based on how many days in the filing period remained when you entered the combat zone. This year the filing period is considered January 1 through April 17. If you entered the combat zone before the filing period began, your deadline is extended by the entire filing period.
Here is how this might work. Let’s say that Joe entered a combat zone on Dec. 1, 2005 and left the zone on March 31, 2007. The deadline for filing his 2006 return is then Jan.12, 2008, which is 287 days (107 days from Jan.1 to April 17, 2007 + 180 days) after March 31, 2007.
However, Joe would not be able to claim an extended deadline when filing a 2007 return, due on April 15, 2008. This is because Joe was not in the combat zone during the filing period for the 2007 tax return (Jan. 1, 2008 to April 15, 2008). The extended period ends 180 days after the last day in the combat zone, which would be Sept. 27, 2007.
For additional information on extensions available to the military or other questions on filing a return, please contact your local Jackson Hewitt office. To locate the nearest office, log on to www.jacksonhewitt.com and click on the office locator feature or call 1-800-234-1040.
