Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form, taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax extension-related questions and their answers.
Question for today’s post:
I Work Outside the US. Can I Get a Tax Extension?
Answer:
This question has some depth to it. Here we go:
The IRS will automatically grant you a 2-month tax extension (meaning you don’t have to file your tax paperwork until June 15) if you qualify for “Out of Country Status” which means you fall into one of the following two categories:
1. You live outside the USA and Puerto Rico and your main place of work is outside the USA and Puerto Rico, or
2. Y ou are in military or naval service outside the United States and Puerto Rico.
If you qualify, you are still eligible for the extra 2 months even if you are in the states on April 15.
What do you do to get that 2-month extension? Attach a statement to your return explaining which of the two categories I listed above qualified you for the extension.
With me so far? Ok, good. Here’s a little more…
If you want a full 6-month tax extension (or 4 more months in addition to the automatic 2-month extension) then you need to file a tax extension with the IRS (Form 4868). This will move your deadline to October 15.
Remember this very important point: a tax extension does not extend your obligation to pay what you owe to the IRS. That money is still due on April 15. The extension give you more time to file your paperwork (like a 1040, for example).
But wait, there’s more:
In addition to a 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers).
To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
USA
You will not receive any notification from the Internal Revenue Service unless your request is denied for being untimely.
The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U.S. citizens and resident aliens abroad who expect to qualify for special tax treatment).
If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.
