| Have you estimated your 2011 tax? | If you live in a low tax country - such as Hong Kong, Dubai or Singapore - you may owe US tax. Hence you should complete making estimated payments for 2011 and get ready to start making estimated tax payments for 2012. We provide this service to our clients. |
| January 31 | File your tax return 2011 if you did not pay your last installment of estimated taxes - this is the last chance to avoid penalties for underpayment of estimated taxes for 2011. |
| March 15 | File form 3520-A for owners of foreign trusts (also applies to the owners of UK and Australian IRA-like accounts). |
| April 17 | First 2012 estimated tax payment is due. |
| April 17 | Deadline to file US Federal tax returns. If you reside outside the U.S. on 4/17/2012, you get an automatic extension until June 15. However - if you owe any tax for 2011, it is due on 4/17/2012 and interest will accrue from this date. |
| June 15 | Deadline to file an extension for Federal Return (for expatriates only). If you need to file an extension you can visit www.officialpayments.com and file a Form 4868. If you don't expect to owe tax, simply pay $3.95 and get an extension. Cheaper than going to the Post Office. |
| June 15 | Second 2012 estimated tax payment is due. |
| October 15 | Final due date to file calendar year 2011 tax returns for taxpayers who received a 6-month expat extension |
| October 15 | Third estimated payment for 2012 due date. |
| December 15 | Final date to timely file tax return for 2011 for expats who requested an additional 2-month extension. |
If you owe money to the IRS, you might be wondering when it's due (especially with the filing extensions granted you as an expatriate). It's easy to be confused, as an expat, about the deadlines for U.S. taxes. In this article we will cover the deadlines for tax returns and FBAR forms, as well as how to file for an extension if needed.
Regular Tax Filing Deadline
All Americans know "tax day" as April 15th. And while this is normally the case, the tax filing deadline will be pushed to the following Monday if the 15th falls on a weekend or a holiday. The filing deadline for the 2011 tax year is April 17th, 2012.
Federal Expatriate Extension, When and How it Applies
As an expat, your necessary tax documents may arrive at different times than you were accustomed to in the U.S. To accommodate you, the IRS automatically extends your filing deadline to June 15th of every year. This automatic kindness does not extend to money owed, however. Any money you owe the IRS will still be due on April 15th (or the following Monday if April 15th lands on a weekend or a holiday). In other words - you are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U.S. citizen or resident alien without incurring late penalties. Even though you are allowed an extension to file, you will have to pay interest on any tax not paid by the regular due date of your return (ie April 17th in 2012).
Any payments made after June 15 would be subject to both interest charges and failure to pay penalties.
Without filing, you may not be aware of how much money, if any, you will owe. Regardless, interest on money owed will begin to accrue as of April 16th (or April 18th in 2012). If you expect to owe money to the IRS, it is wise to file as early as possible to avoid a higher payment at a later date.
Your first quarter estimated tax for 2012 is also due to be made on 4/18/12 using form 1040 ES. Please note that underpayment of estimated taxes by as much as $1,000 or more for the year will generate the underpayment penalty - even if all payments were made on time. If your self-employment income exceeds your previous year income by more than 10%, contact your tax advisor to revise the estimated payment amounts.
You can extend until 10/15/12 your expatriate tax return on or before 6/15/12 by filing Form 4868 with the appropriate box checked. If you need to extend your expatriate return beyond that date in order to qualify for the foreign earned income exclusion you need to file Form 2350.
If you do not file the necessary form to extend your personal return and end up owing taxes, failure to properly extend the form will result in the large penalty of 5% per month of the tax due up to a maximum penalty of 25% of the tax due plus interest. Best to not miss filing that extension due to this high penalty.
Further Extension
Even with the two month extension, it is possible that your forms may not arrive in time. As an expatriate, if you find that you need more time, you can request an additional extension to October 15th. To file for this extension, simply have your accountant file Form 4868 on your behalf. You can also complete the form yourself if you choose to. However, as with all things tax related, it's usually worth the expense to hire a professional.
Filing an FBAR Form
In addition to filing with the IRS, many American expats are required to file a foreign bank account report (referred to as an FBAR). The FBAR is required for any expat who has over $10,000 in foreign bank accounts at any point (even one day) during the year. Anything over $10,000 (and this figure applies to all foreign accounts combined) must be reported. The specific number of the FBAR is Form 90-22-1. This form is due (to the Treasury, the FBAR is not filed with the IRS) by June 30th; and, in the case of an FBAR, there are no extensions. Many expats falsely assume that they do not need to file an FBAR. "Foreign account" is not limited to standard checking and savings accounts, however. You must also take into account your mutual funds, trusts, and brokerage accounts. Also, your business accounts may need to be included. Contact an international tax expert if you are unsure of how to proceed. And do not put the calculating off until the last minute. If you have multiple accounts, this can be a very complicated process.
Federal Tax Return Expat Tax Deadlines & Due Dates Only are Listed Below - Various states may have other filing deadlines - This only includes the most common filing dates and should not be relied on for all filing dates.