NU Online News Service, Oct. 3, 2:58 p.m. – The Internal Revenue Service says reservists called to active, federal duty and new enlistees in the armed forces may qualify for deferral of federal income taxes under the Soldiers and Sailors Civil Relief Act.
The act applies to members of the Coast Guard as well as the Army, Navy, Air Force and Marine Corps, and it can help military personnel get extensions on taxes due before or during military service. Taxpayers who use the act are supposed to make the deferred tax payments six months after their military service ends.
No interest or penalty obligations build up during the military service deferral period.
To qualify for the deferral, taxpayers must prove that they are unable to pay their taxes, and that their military service led to the inability to pay the taxes.