As most exPats know, they get an automatic extension to file their US Federal income tax returns if they are out of the USA on 15 April. The taxpayer simply attaches a statement to their return stating that they were out of the country and are using the automatic extension. However, that is only a 60 day delay in filing the paperwork not paying any tax due. But, should you happen to be visiting the USA on tax day the extension does not apply. To get a full six month extension, you must formally apply and file Form 4868, which you can do online and can be done at any time prior to and including 15th April.
Taxpayers must pay any unpaid tax liability with the extension to avoid late payment penalties. There are several online companies that permit you to use your credit card for a small fee to pay any taxes due and e-file the extension. Check out the IRS website for more information and to see if you qualify for free e-filing with them. The site address is
http://www.irs.gov/newsroom/article/0,,id=177056,00.html
Also due on the 15th day of the fourth month following the end of the year are returns for partnerships, trusts, and limited liability companies, or to file the IRS Form 7004 six month extension request.
April 15th also marks the date of the first instalment on estimated taxes for individuals for the current tax year.
May 15th is the due date for Tax Exempt Organizations to file their annual information Form 990. It is also the due date for Private Interest Foundations and Trusts treated as Private Foundations. Previously we published our analysis of the likely treatment of Panamanian private interest foundations and the IRS push to get information returns on all foreign investments of its taxpayers.
The 31st of May is the due date for filing information returns on the balances of IRAs and SEPs.
June 15th is the last day for foreign corporations that do not maintain an office in the US to file their annual income tax return (Form 1120F).
June 30th is the filing deadline for the information return on foreign bank and financial accounts, Form 90-22.1. This information is NOT part of your income tax filing, but is filed separately with the US Department of Treasury in Detroit. See this IRS site for their list of FAQs
http://www.irs.gov/businesses/small/article/0,,id=148845,00.html
There is no extension available for this form and severe penalties for failure to file even though there is no tax to pay. The IRS revised the form in October 2008 and now wants more details including the specific maximum value in the various accounts and the mailing address of the institution. Previously they only asked the maximum value in general ranges and the name and account number of the institution or broker.
**
Tom Rowley is a semi-retired CPA who lives in Panama and assists exPats with their tax compliance needs. He is authorized to e-file returns for clients and can be contacted at tom@panusatsvc.com