IRS Urges Overseas Americans: File 2023 Taxes by June 17


The Internal Revenue Service (IRS) has issued a reminder to U.S. citizens and resident aliens living and working outside the United States to file their 2023 federal income tax return by Monday, June 17, 2024. This deadline also extends to those with dual citizenship.

However, certain taxpayers residing in specific regions, including Israel, Gaza, or the West Bank, have until October 7, 2024, to both file and pay most taxes due. The announcement follows theTaxpayers who are unable to file their tax returns by the June deadline have the option to request a further extension to file, though payment is still due by June 17. This extension would allow them to file their returns by October 15, 2024. release of Notice 2023-71PDF, which provides detailed information on eligibility and requirements for this extension.

Extensions available

Taxpayers who are unable to file their tax returns by the June deadline have the option to request a further extension to file, though payment is still due by June 17. This extension would allow them to file their returns by October 15, 2024.

Individuals who qualify for the June 17 extension include U.S. citizens or resident aliens living abroad or serving in the military outside the United States and Puerto Rico. The extension is automatically granted if the taxpayer’s main place of business or post of duty is outside the United States and Puerto Rico.

Taxpayers who are eligible for this extension must attach a statement to their return indicating their situation, whether they are living abroad or serving in the military outside the United States and Puerto Rico.

Filing has its benefits

Filing a U.S. tax return is crucial for taxpayers living abroad as it enables them to claim various tax benefits such as the foreign earned income exclusion and the Foreign Tax Credit. Additionally, families are encouraged to explore expanded tax benefits like the Child Tax Credit and Credit for Other Dependents, provided they meet the eligibility criteria outlined in the IRS guidelines.

It’s important to note that federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign accounts and assets. Taxpayers may need to complete and attach Schedule B and Form 8938 to their tax return if they meet specific criteria outlined by the IRS.

Furthermore, certain foreign financial accounts must be reported by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR), with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Taxpayers with foreign assets exceeding $10,000 must comply with this requirement.

Dollar signs

All income received or deductible expenses paid in foreign currency must be reported in U.S. dollars on the tax return. Taxpayers are advised to use the Dec. 31 exchange rate for all For those who relinquished their U.S. citizenship or ceased to be lawful permanent residents during 2023, filing a dual-status alien tax return and attaching Form 8854, Initial and Annual Expatriation Statement, is mandatory.transactions, regardless of the actual exchange rate on the transaction date.

To ensure timely processing of tax payments, the IRS recommends taxpayers to consider electronic payment options available through their IRS Online Account, IRS Direct Pay, and the Electronic Federal Tax Payment System (EFTPS).

For those who relinquished their U.S. citizenship or ceased to be lawful permanent residents during 2023, filing a dual-status alien tax return and attaching Form 8854, Initial and Annual Expatriation Statement, is mandatory.

Taxpayers who cannot meet the June 17 deadline can request an automatic extension until October 15 by filing Form 4868. Similarly, businesses needing more time must file Form 7004 for an extension.

Military considerations

Military personnel stationed abroad or in a combat zone during tax filing season may qualify for an additional extension of at least 180 days. Spouses of individuals serving in a combat zone or contingency operation are generally entitled to similar deadline extensions.

For further guidance and information, taxpayers are encouraged to refer to IRS publications such as Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 519, U.S. Tax Guide for Aliens.

As the tax deadline approaches, taxpayers should comply with the IRS regulations to avoid penalties and ensure a smooth filing process.

For more information, taxpayers can visit the IRS website or consult with the international tax team at Sol Schwartz & Associates.  Just leave your contact information below and we will get back to you promptly.