4868 - Out of the Country

[Sparky]

Never paid any attention to the small box "If you are out of the country and a US Citizen" you received an automatic two month extention of time to file and pay your tax.

Has anyone had this situation and with MFJ do both spouses need to be out of the country? Have a client going to Iraq for four months/also owes big/would love to tell him he has until June 15th to pay. But, his wife will remain in Wisconsin.

What do you think?

[erchess]

Different situation

The two month extension you turned up is for a US civilian who goes to a foreign country as a tourist or worker or volunteer. I don't know if both spouses when MFJ have to go abroad in order for the extension to apply. But your situation is different. You have a US Military person going into a combat zone and his return even if MFJ with a spouse staying in country is not due until after he gets back. As I read 1040 Book 14-9 the extension is at least 180 days after his combat zone service is over plus the number of days between his deployment and the regular filing deadline. If you do military returns you ought to do two things. First read ttb on military matters starting on the page I mentioned and second have a conversation with a member of the armed services or DOD civilian employee who assists military with their taxes. Your client can facilitate that conversation perhaps after checking with a superior.

Now, all that said, remember that an extension of time to file is not an extension of time to pay and if he does not pay both interest and ftp penalty will apply. On the other hand the family may not be able to borrow money on more favorable terms and of course if he is badly wounded or killed the tax and therefore the penalty and interest will be forgiven. Then again filing the return and doing an installment agreement would mean better terms than the extension, I think. Anyway these are some things for you and your client to discuss. I wish this American hero a safe tour of duty and timely return home to loved ones.