Taxpayers living and working outside the United States have been reminded by the Internal Revenue Service (IRS) that the deadline for filing their 2023 federal income tax return is June 17. This applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. While most taxpayers had an April 15 deadline, certain groups, such as those affected by natural disasters, had different deadlines. In addition, American citizens or resident aliens residing overseas or on military duty outside the United States are given an automatic two-month extension, which falls on June 17 this year.
To qualify for the June 17 deadline, taxpayers must live outside the United States and Puerto Rico, with their main place of business or post of duty also located outside these areas. Military personnel serving outside the United States and Puerto Rico on the regular due date of their tax return (April 15 for most people) also qualify. Those wanting to take advantage of the automatic two-month extension must attach a statement to their tax return explaining their situation.
In certain areas designated as disaster areas by the Federal Emergency Management Agency (FEMA), tax filing deadlines were also extended to June 17. These areas include counties and tribal nations in California, Connecticut, Michigan, Maine, Tennessee, and West Virginia. For example, San Diego County in California, New London County in Connecticut, and various counties in Michigan are eligible for the extended deadline.
While taxpayers can request an additional extension to file their tax return, they still need to pay any taxes owed by the June 17 deadline. However, those who qualify for the extended deadline but are unable to file their tax returns by that date can request an automatic six-month extension by filing Form 4868. In some cases, taxpayers can even get an extension longer than six months if they meet certain conditions, such as the bona fide residence test or the physical presence test.
Members of the military stationed abroad or in a combat zone during tax filing season may qualify for an additional extension of at least 180 days to file their tax returns and pay any taxes owed. Taxpayers living and working abroad who receive their incomes in a foreign currency or have deductible expenses in a foreign currency must report this information in U.S. dollars when filing their tax returns. Any tax payments must also be made in U.S. dollars.
For taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the United States in 2023, they must file a dual-status tax return and attach Form 8854.
In other developments, the IRS collected a record-breaking $4.9 trillion in taxes from Americans last year. This was made possible by a significant funding boost of $78 billion, which allowed the IRS to hire more enforcers and deploy advanced technologies like artificial intelligence to increase compliance. However, this year, the tax intake dipped slightly to $4.7 trillion.
To support this increased enforcement, the IRS expanded its workforce by approximately 5 percent last year, hiring around 5,800 new employees.
Overall, taxpayers living outside the United States and those affected by natural disasters have been given an extended deadline of June 17 to file their federal income tax returns. The IRS has also provided additional extensions for certain circumstances and specific areas designated as disaster areas. It is important for taxpayers to be aware of these deadlines and requirements to avoid penalties and ensure compliance with their tax obligations.
