ADMINISTRATIVE NOTICE 96-24


	Subject: 	Personal Income Tax -- Implementation of West Virginia personal income tax relief for military personnel deployed in Bosnia and Herzegovina, Croatia and Macedonia, pursuant to the provisions of P.L. 104-117


FACTS

	The United States Congress passed into law P.L. 104-117 providing federal income tax relief for Department of Defense personnel participating in the peacekeeping efforts in Bosnia and Herzegovina, Croatia and Macedonia.

	P.L. 104-117 provides that, for purposes of certain provisions of the Internal Revenue Code, service by United States personnel in Bosnia and Herzegovina, Croatia, or Macedonia will be treated as service in a combat zone, as determined under Section 112 of the Internal Revenue Code.

	P.L. 104-117 allows: 

	(1)	An extension of time to file the federal personal income tax return for Department of Defense service members in the named locations, 

	(2)	Exclusion of certain income of such personnel from federal gross income for federal personal income tax purposes,

	(3)	Exclusion of certain income of such personnel from gross income for federal personal income tax purposes upon death in the designated zones, and tax relief for personnel reported missing in action, and

	(4)	A limited extension of time to pay federal personal income tax for United States personnel in the designated locations.

DISCUSSION AND ANALYSIS

	West Virginia law allows an automatic extension of time in circumstances where there is an extension of time for federal income tax purposes. 110 C.S.R. 52.1.1 and 52.1.1.1.

	Section 11-21-62 of the West Virginia Code provides an exclusion from tax for members of the armed forces of the United States who die while on active service in a combat zone and addresses the personal income tax treatment of incomes of personnel reported missing in action and certain civilian employees of the 
United States dying as a result of military action in the combat zone. These provisions are similar to those that would apply under P.L. 104-117 in the similar circumstances.

	Although W. Va. Code § 11-21-52 requires taxes shown due on an annual return to be paid on or before the due date of the return, determined without regard to extensions of time for filing such return, West Virginia law allows the Tax Commissioner to grant extensions of time to file or pay West Virginia personal income tax. Extensions of time to pay are limited by the law to not more than six months. However, in the case of persons who are outside of the United States, extensions of time for paying West Virginia personal income tax are not limited to a set period of time. W. Va. Code § 11-21-57.

ORDER

	Extensions of time for paying the West Virginia personal income tax and extensions of time to file West Virginia personal income tax returns are hereby granted to all persons who are subject to the extensions of time for filing or payment of federal income tax allowed under P.L. 104-117. The extensions of time for filing returns and for paying the West Virginia personal income tax hereby granted shall be coextensive with, and coterminous with, such extensions of time granted pursuant to the provisions of P.L. 104-117.

APPLICATION OF THIS ADMINISTRATIVE NOTICE

	The order for extensions of time to pay the West Virginia personal income tax and to file personal income tax returns granted herein shall apply to the current tax period and future periods until revoked or otherwise amended. 

	Please contact the Department of Tax and Revenue at (304) 558-3333 if there are any questions.




							
Issued June       , 1996					James H. Paige III
							Secretary of Tax and Revenue, 
						 	Tax Commissioner


For additional information, please write or call:

W. Va. Dept. of Tax and Revenue			Operator on Duty 8:30 am - 4:30 pm
Taxpayer Services Division				Monday through Friday
P. O. Box 3784						Telephones:  (304) 558-3333 or
Charleston, WV  25337-3784				1-800-982-8297 (within W. Va. only)
							Telecopier:  (304) 558-3269
							TDD Service for the hearing impaired:
			1-800-282-9833