Defense Department employees participate in a meeting presenting information about the updated tax laws in Wiesbaden on March 11, 2019. The changes in tax laws are costing some employees thousands of dollars in additional fees. AARON KNOWLES/STARS AND STRIPES
Defense Department employees participate in a meeting presenting information about the updated tax laws in Wiesbaden on March 11, 2019. The changes in tax laws are costing some employees thousands of dollars in additional fees. AARON KNOWLES/STARS AND STRIPES

DOD employees could owe IRS thousands of dollars in taxes and interest after PCS moves

by Aaron Knowles
Stars and Stripes

WIESBADEN, Germany — Defense Department civilians who made permanent-change-of-station moves within the past two years soon will receive debt notices that also will include unanticipated interest charges and potential state tax penalties because of a 2017 tax law change, military officials in Europe said.

The Defense Finance and Accounting Service office is now calculating amounts owed by affected employees with a plan to mail debt letters in the coming fall, Army officials said. Once the letters are received, employees will have 45 days to pay the entire amounts owed or to work with DFAS to determine payment plans, U.S. Army Europe officials said at a Monday town hall meeting in Wiesbaden.

Many civilians said they were unsure about how much they owed and expressed frustration with an overall lack of clarity about the tax change, which has created widespread confusions at military finance offices.

Read more at: https://www.stripes.com/1.572442

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