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.
