U.S. citizens and green card holders are subject to filing, tax payment, and international financial information reporting obligations before the Internal Revenue Service (IRS), even if they reside abroad.
Key deadlines are approaching for compliance with the tax obligations of non-resident U.S. persons, in order to avoid penalties and interests.
The general deadline to file and pay taxes in the United States expired on April 15th. However, there are alternatives to postpone tax filing (but not payment), particularly aimed for non-resident U.S. Persons.
First, there is an automatic extension of the filing deadline for U.S. persons who regularly live outside the country. This automatic extension is for two months and does not require an express request. Accordingly, this deadline is June 15th.
In addition, non-resident U.S. persons may request an additional four-month extension, until October 15th. To obtain this extension, Form 4868 must be filed, and the box “out of the country and a U.S. citizen” must be checked on line 8 of section II. This extension does not require justification and is automatically granted upon filing the form.
Finally, a further two-month extension may be requested, extending the deadline until December 15th. This must be expressly requested to the Internal Revenue Service on justified groundsand the response will depend on the reasons provided.
As mentioned above, the extensions apply only to the obligation to file tax returns, not to pay taxes. Therefore, although no penalties will apply for late filing, interest will accrue on any unpaid taxes.
The U.S. tax system also includes financial information reporting obligations, such as the Foreign Bank Account Report (FBAR), which generally applies to taxpayers who hold foreign bank accounts whose maximum aggregate balance exceeds USD 10,000 at any point during the year.
The deadline to file the FBAR is October 15th.
For any questions or further information on this matter, please contact our Tax team.