While most tax accountants are enjoying the reduced pressure of post tax season, those filing expat returns are just getting started. The extended filing deadline is June 15th.
This extension is very important. For instance, in Israel, most employees don't get their Form 106 (the Israeli W-2 equivalent) until late March, and with a holiday right after, most US citizens have not gotten around to filing their US tax return yet. Likewise, many self-employed people don't have their yearly profit and loss statement and Israeli tax returns in order until June. The foreign tax credit is based on amounts computed on the Form 106 or Israeli tax return.
Don't be fooled by a common misconception: Many think that June 15th is both the extended filing date, as well as the tax due date. However, tax was due for everyone on April 18th this year. June 15th is just an extended filing date - which means that failure to file penalties will not be assessed for those living abroad, until after June 15th. But failure to pay penalties and interest are already accruing for those who are late. Don't wait until huge penalties have accrued!
Feel free to reach out if you need any help filing your expat return - now is the time. My efficient processes ensure your return to be filed within 10 days.
Comments