Issue Number: IR-2025-39 Inside This Issue
IRS reminder to U.S. taxpayers living, working abroad: File 2024 tax return by June 16 WASHINGTON – The Internal Revenue Service today reminded taxpayers living and working abroad that they have until Monday, June 16, 2025, to file their 2024 federal income tax return and pay any tax due. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. In general, on the regular due date of their return, a U.S. citizen or resident alien residing overseas or in the military on duty outside the U.S. is allowed a two-month extension to file without needing to ask for it. If they use a calendar year to file their return, as virtually all individual taxpayers do, the regular due date of their 2024 return is April 15, 2025. The automatic extended due date is June 16, 2025, pushed back from the usual June 15 because that date falls on a Sunday this year. Even with the tax-filing extension, interest will apply to any 2024 tax payments received after April 15. This means that unpaid tax-year 2024 tax balances will begin accruing interest, currently at the rate of 7% per year, compounded daily, after April 15, 2025. Who Qualifies? A taxpayer qualifies for the June 16 extension if they are a U.S. citizen or resident alien and, on the regular due date of their return: - They are living outside the United States and Puerto Rico and their main place of business or post of duty is outside the United States and Puerto Rico, or
- They are in military or naval service on duty outside the United States and Puerto Rico.
Qualifying taxpayers should attach a statement to the return indicating which of these two situations applies. Extensions beyond June 16 Taxpayers who can't meet the June 16 due date can request an automatic extension to Oct. 15, 2025. This is an extension of time to file, not an extension to pay. The fastest and easiest way to get an extension is to request it electronically. Several electronic filing options are available. Visit Get an Extension to File Your Tax Return for details. Taxpayers may also use IRS Free File to file an extension electronically. Taxpayers who cannot request an extension electronically can complete and mail Form 4868 to the IRS. See About Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return for more information. Taxpayers can also get an extension when paying a tax bill electronically. There is no need to file Form 4868 when selecting an extension when paying electronically. Businesses that need more time must file Form 7004 to request an automatic 6-month extension. Visit About Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns. Combat zone extensions Members of the military in a combat zone during tax filing season may qualify for an additional extension of at least 180 days to file and pay taxes. More information, like who qualifies, can be found at Extension of Deadlines – Combat Zone Service Q&As. Spouses of individuals who serve in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and tax information for members of the military are available in IRS Publication 3, Armed Forces' Tax Guide. Special relief for terrorist attacks in Israel Taxpayers who live or have a business in Israel, Gaza or the West Bank and certain other taxpayers affected by the terrorist attacks in the State of Israel have until Sept. 30, 2025, to file and pay. This includes most returns and taxes due from Oct. 7, 2023, through Sept. 30, 2025, including Form 1040 and 1120 series returns. Filing required to get tax benefits Many taxpayers living outside the U.S. qualify for tax benefits such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, but these benefits are available only if a U.S. return is filed. Other deductions and tax credits may also be available. For details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, available on IRS.gov. Reporting required for foreign accounts and assets Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B, Interest and Ordinary Dividends, to their Form 1040 series tax return. Part III of Schedule B asks about the existence of foreign accounts such as bank and securities accounts and usually requires U.S. citizens to report the country in which each account is located. In addition, many taxpayers may also need to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. For details, see the instructions for this form. Reporting foreign financial accounts to Treasury Foreign financial accounts, such as bank accounts or brokerage accounts, must be reported to the Treasury Department's Financial Crimes Enforcement Network (FinCEN) by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The FBAR requirement applies to anyone with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2024. The IRS urges taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is available only through the Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR is April 15, 2025. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15, 2025. There's no need to request this extension. See FinCEN's website for further information. Report in U.S. dollars Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars. Both FINCEN Form 114 and IRS Form 8938 require the use of a Dec. 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign Currency and Currency Exchange Rates. Making tax payments To ensure tax payments are credited promptly, the IRS urges taxpayers to consider the speed and convenience of paying their U.S. tax obligation electronically. The fastest and easiest way to do that is via their IRS Online Account, IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS). Options to pay with debit or with credit card and digital wallets are available as well. Service providers charge a fee for this option. For details on these and other electronic payment options, visit IRS.gov/Payments. Reporting for expatriates Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the U.S. during 2024 must file a dual-status alien tax return and attach Form 8854, Initial and Annual Expatriation Statement. A copy of Form 8854 must also be filed with the IRS by the due date of the tax return (including extensions). See the instructions for this form and Notice 2009-85, Guidance for Expatriates Under Section 877A, for further details. Other resources: Back to Top
    
Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. | 
