Taxes are never easy — but add in a move abroad and an already cumbersome necessity can become especially frustrating. That’s right, United States Tax Code still requires citizens that live abroad to file tax returns with the Internal Revenue Service (IRS).
Do I still need to pay the IRS if I am paying a foreign tax authority?
It depends. There are various tax credits and deductions that can apply to those living abroad, including a deduction for paying foreign taxes.
When are the filings due?
They are generally due April 15, just like traditional tax returns here in the United States. However, those who live and work abroad often qualify for an automatic extension. This option applies when the taxpayer meets one of two requirements:
- Their home is abroad; or
- They are serving abroad in the military.
If either apply, include a statement with the filings explaining which requirement applies to the situation. This leads to a two-month extension, with tax filings due June 15.
What if I miss the deadline?
Those who failed to file in time have options to come into compliance. These can include requesting an additional extension.
It is important to note the IRS is not the only agency that may require filings. The Treasury Department could also require the taxpayer file a Report of Foreign Bank and Financial Accounts (FBAR). The attorneys at Goldburd McCone can review your situation and discuss the pros and cons of each to help you come into compliance with applicable tax laws.