Tax Extension Center continues its daily series of The Top 100 Reasons to File a Tax Extension. Our goal is to educate taxpayers that filing a tax extension can be a valuable tax season option for you or your business because it saves time, stress, and even money.

Here’s reason #76: you are overseas for work.

In reason #41 I talked about how being out of the country is a great reason to file an IRS extension. The reason for this post is a little different. This pertains to people working outside the US.

So if this is your situation, here’s the deal: 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. You 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) to give yourself more time to finish your taxes, then you need to file a tax extension with the IRS (Form 4868). This changes your tax deadline to October 15. And for a lot of people working abroad, this is a great option because it gives them more time.

Ever filed a federal extension? Whether you are new to IRS extensions or you are one of the 15 million invidious and businesses that file one very year, remember that income tax extensions do not give you more time to pay what you owe the IRS for income taxes. You are still responsible for paying what you owe by midnight on April 15 (or March 15 for the corporate taxes). An extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make your payment on time could make you subject to tax extension penalties and interest.

Have any questions of feedback? Let’s talk about it in the comment section below.

Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.

Here’s reason #41: you are out of the country and won’t return until after April 15.

If work or pleasure travel take you outside the country on April 15, one of the last things on your mind will be filing your taxes.

Instead of rushing to get your taxes done before you leave, filing a tax extension is the perfect option to leave your travel plans intact and deal with taxes when you get back home.

Remember, getting an extra 6 months doesn’t mean you have to wait until October to file. The extension gives you options to file any time after April 15 without penalty. So if you get home on May 1, you can file then knowing that you won’t be hit with a late filing penalty.

One last thing, being out of the country for travel is different than living or working out of the country.

Maybe you are new to filing a tax extension. Or maybe you file one every single year. Either way, remember that a tax extension does not give you more time to pay what you owe the IRS. You still need to make your payment by midnight on April 15. An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make a payment could make you subject to tax extension penalties and interest.

Got any thoughts about tax extensions? Let’s chat in the comment section below.

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.