Washington (April 11, 2003) - Military and support personnel involved in Operation Iraqi Freedom will get an exclusion from income for combat pay and automatic extensions of time to file and pay tax, according to the Treasury Department and the Internal Revenue Service.

"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," saidTreasury 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."

“Like the President said to the Marines at Camp Lejeune,” Snow added, “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. 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 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.

-- Electronic Accountant Newswire staff

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