US citizens living and working abroad may be familiar with the automatic federal filing extensions available for US individual income tax returns. A less widely known discretionary extension may provide additional time when foreign tax information, investment reports or other international tax documents are delayed.
Eligible taxpayers living abroad generally receive an automatic extension from 1 April to 15 June and may extend the filing deadline to 15 October by submitting Form 4868 with the IRS. Taxpayers who still need additional time may request a discretionary extension from the IRS through 15 December.
The 15 December extension is not automatic and must be requested specifically. It may be especially useful for taxpayers awaiting foreign tax assessments, partnership statements, trust information or other documentation required to prepare a complete and accurate tax return.
Taxpayers requesting the discretionary extension should:
For globally mobile individuals with complex reporting obligations, this discretionary extension can provide valuable time to obtain outstanding information and support complete, accurate federal tax reporting. Taxpayers considering the extension should consult their tax adviser well before 15 October to confirm eligibility, prepare the written request and address any related payment or state filing obligations.
Lucia Spevacek
BDO in United States
Eligible taxpayers living abroad generally receive an automatic extension from 1 April to 15 June and may extend the filing deadline to 15 October by submitting Form 4868 with the IRS. Taxpayers who still need additional time may request a discretionary extension from the IRS through 15 December.
The 15 December extension is not automatic and must be requested specifically. It may be especially useful for taxpayers awaiting foreign tax assessments, partnership statements, trust information or other documentation required to prepare a complete and accurate tax return.
Taxpayers requesting the discretionary extension should:
- Confirm eligibility for the special filing extensions available to taxpayers whose tax home and residence are outside the US.
- Secure an extension through 15 October before requesting additional time.
- Submit a written request to the IRS before 15 October that explains why additional time is needed to complete and file the return.
- Include their name, address, Social Security number or ITIN, and the applicable tax year.
- State clearly that an extension through 15 December is requested and describe the circumstances preventing timely completion of the return.
- Mail the request to the IRS service centre where the return would otherwise be filed.
BDO Perspective
For globally mobile individuals with complex reporting obligations, this discretionary extension can provide valuable time to obtain outstanding information and support complete, accurate federal tax reporting. Taxpayers considering the extension should consult their tax adviser well before 15 October to confirm eligibility, prepare the written request and address any related payment or state filing obligations.Lucia Spevacek
BDO in United States