(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
JS-174
Today the Treasury Department and the Internal Revenue Service announced administrative tax relief that is being provided for military and support personnel involved in Operation Iraqi Freedom.
We are indebted to all the members of the armed forces for what they are doing to protect our freedom and to liberate the Iraqi people, stated Treasury Secretary John Snow. In recognition of their service to this country, all servicemen and women are provided an exclusion from income for the military pay they earn while in the combat zone and automatic extensions of time for filing a return or paying a tax. Relieving members of the military and their families from concerns about their taxes is a small token of the appreciation we owe them.
Secretary Snow continued, “And like the President said to the Marines at Camp Lejeune ‘When freedom needs defending, America turns to our military. And as they do their job, our men and women in uniform count on their families -- like you all here today. This is a time of hardship for many military families. Some of you have been separated from your loved ones for quite a while because of long deployments. All of America is grateful for your sacrifice.’”
Treasury and IRS issued Notice 2003-21 which provides guidance for those serving in the combat zone. The notice, in question and answer format, discusses tax relief available to military and support personnel involved in Operation Iraqi Freedom. The relief includes exclusion from income of military pay earned while serving in the combat zone and extensions of deadlines for certain acts, such as filing a return or paying a tax. The notice explains how to contact IRS offices, both in the US and abroad, by e-mail, telephone or telecopier, for more information.