June 15 Deadline Nears for Taxpayers Living Abroad!

US Taxpayers living abroad qualifying for an automatic two-month extension must file their 2014 federal income tax returns by Monday, June 15, 2015 according to the Internal Revenue Service.

The June 15 deadline applies to U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular April 15 due date.

To use the two-month extension, taxpayers must attach a statement to their tax return explaining which of these two situations applies. See U.S. Citizens and Resident Aliens Abroad for more information.

Taxpayers who cannot meet the June 15 deadline can get an automatic extension until Oct. 15, 2015. This is an extension of time to file, not an extension of time to pay. Interest, currently at the rate of three percent per year compounded daily, applies to any payment made after April 15, 2015. In some cases, a late payment penalty, usually 0.5 percent per month, applies to payments made after June 15, 2015.

Taxpayers abroad, regardless of income, can use Free File to request a tax-filing extension. Alternatively, eligible taxpayers can download and file Form 4868, available on IRS.gov.

In some cases, an additional extension beyond Oct. 15 may be available. Additional extension of time for taxpayers out of the country. In addition to the 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 Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. 

Details are in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. In addition, members of the military and others serving in Afghanistan and other combat zone localities normally have until at least 180 days after they leave the combat zone to file their returns and pay any taxes due. For details, see Extension of Deadlines in Publication 3, Armed Forces Tax Guide.

Federal law requires U.S. Citizens and Resident Aliens to report any Worldwide Income, including income from foreign trusts and foreign bank and securities accounts on their federal income tax return.

Additionally, U.S. persons with foreign accounts whose aggregate value exceeded $10,000 at any time during 2014 must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

Form 114 replaces TD F 90-22.1, the FBAR form used in the past. It is due to the  Department by Tuesday, June 30, 2015 must be filed electronically, and is only available online through the Treasury BSA E-Filing System website. This June 30 due date cannot be extended and tax extensions do not extend the FBAR filing due date. For details on FBAR requirements, see Report of Foreign Bank and Financial Accounts (FBAR).

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