April 3, 2003

Governor Jennifer M. Granholm today announced that Michigan servicemen and women serving in combat zones in the Middle East as part of Operation Iraqi Freedom will be granted an automatic extension to file their 2002 Michigan individual income tax returns.

"Our servicemen and women have placed their lives on the line for us and the entire nation, so it’s important that we support them in ways large and small," Granholm said today. "It’s just common sense that those who were called to duty not be penalized for circumstances beyond their control."

Under Internal Revenue Code 7508(a), Iraq, Kuwait, the Persian Gulf, and several other nations in the Middle East are considered "combat zones." United States military personnel serving in any of those areas on April 15, 2003, will be given 180 days after leaving the "combat zone" to file their federal and state tax returns.

"This is one way the State of Michigan can show its support for our men and women in uniform," said State Treasurer Jay B. Rising. "It is only right to give them additional time to take care of any preparation and tax obligations they might have once they return home."

The "combat zone" automatic extension is available to single and joint filers. During the 180 days, all interest and/or penalties are waived for qualifying military personnel, and there is no requirement to send in an "estimated payment" before being granted the extension. Income received for services in the armed forces of the United States is tax-exempt.