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This Month's Top 3 Tax FAQs
Question #1 – Will the IRS automatically accept an expat’s request for a tax return extension from July 15 to October 15?
Answer – Yes.
As discussed in our previous newsletters, this year's filing deadeline was moved from April 15 (or June 15 in the case of U.S. citizens living abroad) to July 15, 2020. If your extension request form is timely filed by July 15, the IRS will automatically grant you an extension to file your income tax return until October 15.
Question #2 – Does an extension to file also mean an extension to pay tax?
Answer – No.
If you owe tax, the extension to October 15 applies only to the tax return filing and not to the tax payment obligation. Therefore, you must still submit your payment to the IRS by July 15 to avoid paying interest on your late payment.
Late payment penalties also do not commence until July 15.
Question #3 – Is October 15 the absolute last date for an expat to timely file his or her tax return?
Answer – Not necessarily.
In certain cases, a further extension may be granted by the IRS if, for good reason, October 15 does not provide sufficient time to file the tax return. An Expat Tax Professional should be consulted to discuss this extension option.
