By Bethany Bouw
The due date for individual income tax returns (April 17, 2018) is nearly upon us. Some of you may be wondering if you qualify for the automatic two-month extension. Ryan & Wetmore is here to help you with your extension concerns.
Do I qualify?
In order to qualify for the two-month extension, you must meet one of the following two criteria:
- Are you a US citizen or US resident taxpayer and your main place of business and residency is outside of the US and Puerto Rico? If yes, you qualify.
- Are you in military or naval service on duty outside the US and Puerto Rico on the regular due date of the return? If yes, you qualify.
- If you do not qualify for the automatic two-month extension and require additional time to file, you can extend your return using Form 4868.
What is my new due date?
If you qualify for the automatic two-month extension (and assuming a calendar year), your return is due on June 15, 2018. The extended due date considers weekends and holidays just like the April 15th deadline. So, if June 15th falls on a Saturday or a Sunday, your extended return would be due June 16th. If you require additional time still to file your return, you can request additional time on Form 4868 (you should check the box on line 8 to note that you are “out of the country”).
Does this extend the time I have to pay my tax?
No, the automatic two-month extension is only an extension for filing the return. This is not an extension for paying the tax owed on your return. While there are no late payment penalties if you pay by the two-month extended due date, you may owe interest on the late paid taxes. If you expect to owe taxes with your filing, the best plan to eliminate or reduce your interest expense is to pay the estimated tax amount by the regular un-extended due date.
Do I have to do anything to claim the extension?
When you file the return, it should contain a statement that explains your qualifications for the extension. Your tax preparer will be able to put the appropriate language in your return to document your extension.
Who can help me with this?
Ryan & Wetmore has experience assisting clients with their foreign residency tax extensions. We would be happy to assist you with any concerns about extending your return.
Bethany Bouw CPA, is a manager at Ryan & Wetmore and has been with the firm for over eight years. She has experience with offshore voluntary compliance and assisting taxpayers with foreign asset and entity reporting requirements. Contact her at firstname.lastname@example.org.
Traci Getz CPA, is a partner with Ryan & Wetmore, P.C. Traci has over fifteen years of experience providing accounting, tax, and consulting services to small and medium-sized business owners. She works with clients to understand their accounting and tax issues while specializing in international tax, healthcare, and construction. Please contact Traci at Tgetz@ryanandwetmore.com.
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.