File Your US Tax Extension as an Expat Abroad

Finding out your US tax obligation still stands after moving abroad can leave you with quite the learning curve. Fortunately, instead of learning every IRS form, you can use MyExpatTaxes software, which specializes in US expat taxes. Using the MyExpatTaxes software can help ensure you are aware of key deadlines while simplifying the process for you. Let’s get you up to speed with some important extension deadlines so you can avoid unnecessary penalties and complications.

US Tax Extension Deadlines for Expats

You may be familiar with standard fling deadlines when living in the US. However, now that you’re a US expat living abroad, you will have a few more deadlines beyond the April 15th deadline. For instance, living abroad actually grants you a 2-month automatic extension until June 15th. This already provides you with additional time to gather all your necessary documentation.

If 2-months is not enough, you can file an extension for October 15th. All you need to do is IRS form 4868, which can be filed directly through the MyExpatTaxes software.

October 15th is an important deadline for FBARs, but it is not the final deadline for filing your US tax return. You can request an additional tax extension deadline for December 15th. However, this must be done by mailing a letter to the IRS, and it must be sent before the October 15th deadline to avoid penalties. Keep reading to find out more about what should be included in this letter.

Here’s a breakdown of the key dates:

Why You Need to File an Extension

When you file US taxes late or fail to pay on time, it has a likelihood to result in penalties that can quickly add up. Here is an overview of the main types of penalties:

1. Interest on Unpaid Taxes:
   1. If you do not pay the full amount of US taxes by April 15th, the IRS will add interest to the outstanding balance until it’s paid completely.
2. Failure to File Penalty:
   1. If you miss the filing deadline (including extensions), a penalty of 5% will be imposed on the unpaid tax amount for your late US tax return, up to a maximum of 25%.
3. Failure to Pay Penalty:
   1. If you don’t pay your taxes on time, the IRS charges a penalty of 5% per month on the unpaid amount, again up to 25%.

You can avoid these penalties by setting reminders to file your US taxes and extensions when necessary. Sign up for our monthly email reminders, or follow MyExpatTaxes on Linkedin, Facebook, Instagram, and even TikTok to stay up to date!

FBAR Filing Deadline

US expats with foreign bank accounts need to file a report, known as the Foreign Bank Account Reports (FBARs), if their accounts exceed a balance of $10,000 at any time in the year. Unlike your tax filing, which goes to the IRS, this document is sent to the Financial Crimes Enforcement Network (FinCEN).

The deadline for this is April 15th, as it aligns with taxpayers living in the US. However, there is an automatic extension until October 15th. After the October 15th deadline, there is no possibility for another extension, so file before the deadline.

If you fail to file your FBAR on time, you could be looking at fines of up to $10,000 per missed FBAR. Make sure you remember to file; you can easily do it all at once with MyExpatTaxes.

How to File an October 15th Extension

If you want to file an extension for the October 15th deadline, we can help. It is easy: just sign up and check the box that states you want to file an extension. Make sure to file your extension before the June 15th deadline.

How to Request a December 15th Extension

Say you know you’re not going to make the October 15th deadline, and you need more time. Well, you can request an extension until December 15th. In order to do this, you will have to send a written letter to the IRS before the October 15th deadline.

Example Letter for the IRS

October (date), 2024

I, (full name), with Social Security Number (your Social Security Number) request an extension to file Form 1040 and the associated schedules and forms required for the 2023 tax year until December 15, 2024. The reason is that I am awaiting local tax documents to prepare my return. I sincerely hope I can have this extension.

Best regards,

(full name),

(your social security number)

Once the letter has been written and mailed to the IRS, do not expect to receive any confirmation that it was received. You will be in the unknown unless you take the proper precautions. When you go to mail it, request a signature upon delivery for proof that the letter has been received. Even though you may lack confirmation, it is still incredibly important for tax filing.

When you submit your US tax return, attach a copy of your extension request letter to form 1040 and write “Taxpayer Abroad” on the form.

Mailing Address of the IRS in the United States

Please send your letter in an internationally stamped envelope to: 

Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
USA

The above address would be the same as the IRS Service Center if you were to mail your US tax form. We suggest you send your letter through a private delivery service like DHL or FedEx. Using these services allows you to receive of proof that your letter arrived safely at the headquarters.

Even if you do not need the extra time because you finished filing by October 15th, it does not hurt to request the extension as a precautionary measure.

Getting Caught Up

After reading about the penalties, you may be feeling nervous about filing as a US citizen abroad. The IRS understands that it may not be common knowledge to file US taxes abroad. This is why the IRS introduced the Streamlined Procedure, which allows US expats to catch up on past tax returns without penalties!

If you haven’t filed US taxes after moving abroad, you could be eligible for the Streamlined Procedure. This procedure allows you to file three years of unfiled US tax returns and up to six FBARs. If you think you might need the Streamlined Procedure, you should take a look at the MyExpatTaxes guide or talk with a US Tax Professional.

Additional Support for US Expats

The MyExpatTaxes team is here if you need us. Our team can help answer your US tax questions, and provide support if you’re an American or Green Card Holder abroad. Even if you need to catch up on missed or unfiled tax returns, you can also take advantage of the Streamlined Procedure. There is always a tax solution we can provide you with.

By staying informed of your tax obligations, using the available extensions, and seeking professional help when needed, you can avoid unnecessary penalties and keep your tax situation in good standing

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