Tax Type
General Provisions
Description
OPERATION JOINT ENDEAVOR
Topic
Taxpayers' Remedies
Date Issued
04-23-1996
Virginia Department of Taxation
96-2
OPERATION JOINT ENDEAVOR
Governor Allen signed into law legislation (HB 668) to provide extensions and other tax benefits to members of the Armed Forces serving in former Yugoslavia, including the air space above or related naval operations in support of Operation JOINT ENDEAVOR as part of the NATO Peace Keeping Force. This bulletin provides an overview of these benefits.
Extensions: For taxable years 1995 and 1996, members of the Armed Forces serving in Operation JOINT ENDEAVOR on the original due date of the Virginia income tax return are granted an extension of time to file and pay the tax due that is equal to the later of:
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- the same individual income tax filing and payment extension they receive for federal purposes, plus an additional 15 days, OR
a 1-year extension (until May 1, 1997, for 1995 returns).
- the same individual income tax filing and payment extension they receive for federal purposes, plus an additional 15 days, OR
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- Individuals qualifying for this extension should write "JOINT ENDEAVOR" on the top of their return and on the envelope.
Combat pay: Federal legislation grants military personnel serving in Operation JOINT ENDEAVOR the same tax considerations that apply to combat zones. Under federal law (IRC § 112) enlisted personnel receive a total federal exclusion, while officers receive an exclusion equal to the "maximum enlisted amount." HB 668 grants a total exclusion for both enlisted personnel and officers.
Enlisted personnel who are entitled to the federal total exclusion do not need to make an adjustment on their Virginia income tax return, however, officers who qualify for the federal limited exclusion are entitled to claim a subtraction on their Virginia income tax return for the amount of combat pay that is subject to federal income tax.
Estimated tax: Estimated tax declarations and installment payments are not required of individuals during the period of their filing and payment extension.
Penalty and interest: Penalty and interest will not accrue during the extension period above. In addition, collection activities will be withheld during the period, and the period of limitations for administrative and judicial remedies for appealing tax assessments will be extended.
"JOINT ENDEAVOR" should be written on any notice issued to combat zone personnel regarding tax collection or examination and the notice should be returned to the Department of Taxation.
Refunds: Individuals may file early to receive a refund. Interest will be paid on 1995 refund returns filed by JOINT ENDEAVOR personnel after May 1, 1996.
Combat death: Like federal law, current year Virginia income taxes and all outstanding assessments for prior years will be waived if a member of the armed forces dies in a combat zone or as the result of an injury occurring in the zone.
Spouses: Extensions apply equally to members of the armed forces and their spouses; however, service families may wish to file early to receive refunds. If it is not possible to obtain a signed power of attorney form from a spouse in the combat zone, the Department of Taxation will accept a written statement that the spouse is serving in the zone and that the return is being filed on his or her behalf.
WHERE TO GET HELP
If you have any questions, contact:
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- The Commissioner of the Revenue, Director of Finance or Director, Department of Tax Administration for your Virginia city or county; or
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- The Department of Taxation's Office of Customer Services at (804) 367-8031
WHERE TO GET FORMS
You can get forms from the office of any Commissioner of the Revenue, Director of Finance or Director, Department of Tax Administration or by writing to the Virginia Department of Taxation, Forms Request Unit, P. O. Box 1317, Richmond, VA 23210-1317. Also, you can call the Department of Taxation at (804) 367-8055 or (804) 367-8205 to order forms.
Rulings of the Tax Commissioner