Mark your calendar: June 15th and June 30th.
There are two filing deadline dates rapidly approaching that certain taxpayers need to be aware of: June 15 and June 30.
U.S. citizens and residents living abroad have until June 15 to file their individual income tax return, Form 1040. These individuals receive an automatic extension of two months past the normal April 15 deadline to file their taxes (no form required to be filed). If by June 15 they still need additional time to file, an additional four-month extension can be filed with Form 4868.
This extension moves the filing deadline out to October 15. For those taxpayers anticipating special tax treatment from their foreign status (i.e. they would be eligible for the Foreign Income Exclusion), then an additional extension of time to file should be requested by mailing Form 2350. In all cases, an extension only grants additional time to file, not additional time to pay your taxes.
Offshore Accounts & Values
U.S. taxpayers who have non-U.S. (offshore) financial accounts may be subject to special, additional reporting on those accounts. This includes, but is not limited to, checking, savings, investment, and life insurance accounts with a cash value component.
If the aggregate U.S. dollar value of all foreign accounts exceeded $10,000 at any time during the calendar year, then an FBAR report (FinCEN Form 114) must be filed to disclose these accounts and their maximum values. These reports must be filed by June 30th covering activity for the previous calendar year. No extension of time to file is available. A person who is required to file an FBAR, and fails to properly file, may be subject to a civil penalty not to exceed $10,000 per violation.
About Five Stone Tax Advisers
Five Stone Tax Advisers has years of experience negotiating directly with the IRS to get the best possible outcome for you. Our International Tax Advisory and Compliance unit has a team of tax attorneys, certified public accountants and enrolled agents that form a single sourced point of contact that will provide services for all the legal, compliance and financial reconstruction aspects of offshore account cases.