Greenback Explains Why US Expats Should File by April 17th Despite Automatic Extension

Greenback Expat Tax Services reports: While extensions are available and often necessary, all expats should aim to file their US expat tax return by April 17th to avoid extra costs.

Read the full press release, originally published on PR Web, below:

US citizens who live and work overseas face a number of deadlines when it comes to their US expat tax return. The US expat tax deadline under the automatic extension is June 15th and the tax return needs to be filed with the IRS. Additionally, the Foreign Bank Account Report (FBAR) needs to be filed with the US Department of the Treasury, not the IRS, and must be received by June 30th for those expats with over $10,000 in foreign accounts. No extensions are available for the FBAR. The IRS does offer extensions on tax returns to October 15th, but only by request.

Although all US expats receive an automatic two-month extension that prolongs the April 17th deadline to June 15th, Greenback Expat Tax Services urges expats to file by April 17th if at all possible. According to Greenback Expat Tax Services President David McKeegan, it literally pays to file by April 17th. “Many expats,” says Mr. McKeegan, “don’t realize that even though the deadline for US expats is June 15th, if they owe any taxes interest begins to accrue as of April 17th. Although many expats don’t owe tax if they file their taxes correctly and take advantage of all the exclusions and credits, it always pays to be on the safe side.”

US expats can also request an extension to October 15th. The IRS understands that sometimes expats are unable to file by the original or automatically extended deadline. Greenback Expat Tax Services understands this as well, but they still advise expats to plan ahead and aim for April 17th. According to Mr. McKeegan, interest charges aren’t the only things to consider. “It’s such a great feeling of satisfaction to get your tax obligations fulfilled early in the year. We know that delays are sometimes unavoidable, but filing by April 17th provides relief for expats in that it allows them to get their taxes out of the way. Furthermore, all expats should be advised not to get behind on their taxes. The IRS takes delinquency quite seriously even for expats, and those who make it a habit to file by the original deadline will be much less likely to end up under question by or in trouble with the IRS. Filing a US expat tax return can be a challenging process, but we hate to see anyone suffer the consequences of late filing or delinquency.” Finally, one last consideration that should not be overlooked: the sooner you file your US expat tax return, the sooner you are entitled to a refund (if relevant)!