On June 12, 2017 the IRS released IR-2017-105 reminding taxpayers living and working abroad that they must file their 2016 federal income tax return by Thursday, June 15.
The special June 15 deadline is available to both U.S. citizens and resident aliens abroad, including those with dual citizenship.
For those who can’t meet the June 15 deadline, tax-filing extensions are available and they can even be requested electronically.
In addition, a new filing deadline now applies to anyone with a foreign bank or financial account required to file an annual report for these accounts, often referred to as an FBAR.
- if both their tax home and abode are outside the United States and Puerto Rico.
- Those serving in the military outside the U.S. and Puerto Rico also qualify for the extension to June 15.
Be sure to attach a statement indicating which of these two situations applies.
Interest, currently at the rate of four percent per year, compounded daily, still applies to any tax payment received after the original April 18 deadline.
Automatic Extensions Available Taxpayers abroad who can’t meet the June 15 deadline can request an extension request which must be filed by June 15. Automatic extensions give people until Oct. 16, 2017, to file; however, this does not extend the time to pay tax.
- Anyone can request an extension on Form 4868.
- To get the extension, taxpayers must estimate their tax liability on this form and pay any amount due.
- Another option for taxpayers is to pay electronically and get an extension of time to file. IRS will automatically process an extension when taxpayers select Form 4868 and they are making a full or partial federal tax payment using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a debit or credit card.
- There is no need to file a separate Form 4868 when making an electronic payment and indicating it is for an extension.
- Specific extension requests are not required.
- In the past, the FBAR deadline was June 30 and no extensions were available.
- In general, the FBAR filing requirement applies to anyone who had an interest in, or signature or other authority, over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2016.
- Because of this threshold, the IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them.
- The form is only available through the BSA E-filing Systemwebsite. Report in U.S. Dollars
- Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars.
- Likewise, any tax payments must be made in U.S. dollars.
- For more information on exchange rates, see Foreign Currency and Currency Exchange Rates.
Read more at: Tax Times blog