US Taxpayers Living Abroad Have Until June 17 to File US Return and Pay US Tax

With April 15 fast approaching, the IRS is reminding taxpayers living abroad that they have until Monday, June 17, 2024, to file their federal income tax returns. Taxpayers unable to file their tax returns by the June deadline can request a further extension to file, but not pay, until October 15. (IR 2024-79)

Who gets until June 17 to file?

US citizens and resident aliens that reside outside the US, or are on military duty outside the US, are allowed an automatic two-month extension to file their return and pay any tax owed. This automatic extension is granted if, on the regular due date of their return (April 15),

• The taxpayers is living outside the US and Puerto Rico and their main place of business or post of duty is outside the United States and Puerto Rico, or

• The taxpayer is in military or naval service on duty outside the US and Puerto Rico.

Taxpayers who qualify for this extension should attach a statement to their return indicating which of these two situations applies.

Note. The IRS already may have granted some taxpayers living abroad a disaster extension. For example, US taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in Israel have until October 7, 2024, to both file a return and pay most taxes due. For more information, about the tax relief granted to US taxpayers affected by the terrorist attacks in Israel, see Notice 2023-71.

Claiming benefits.

Taxpayers living abroad may qualify for tax benefits, such as the foreign earned income exclusion and the Foreign Tax Credit, but these benefits are only available if the taxpayer files a US return.

Foreign account reporting (IRS).

US taxpayers living abroad should also remember to report their foreign financial accounts on various parts of their return. Taxpayers with foreign financial accounts will need to complete Part III of Schedule B, Interest and Ordinary Dividends, to report the existence of foreign accounts such as bank and securities accounts and in which countries the accounts are located. Taxpayers with foreign accounts that exceed certain thresholds may also need to complete Form 8938, Statement of Specified Foreign Financial Assets.

FBAR reporting.

In addition to reporting their foreign financial accounts on Schedule B and Form 8938, US taxpayers living abroad may also need to report such accounts to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The FBAR requirement applies to anyone with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2023. The FBAR Form 114, Report of Foreign Bank and Financial Accounts, is filed electronically through the Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR is April 15, 2024. However, FinCEN grants those who missed the April deadline an automatic extension until October 15, 2024.

Note. The amounts reported Form 1040, IRS Form 8938, and FINCEN Form 114 should be in US dollars. Taxpayers are required to use the December 31 exchange rate when converting foreign amounts to US dollars. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign currency and currency exchange rates.

For more information regarding filing dates for US citizens living abroad, see Checkpoint’s Federal Tax Coordinator ¶S-5065.