Who needs to file by the deadline? Most U.S. citizens and resident aliens living overseas must file a return. Even though the filing date for taxpayers living abroad is June 15, if taxes were owed the amount was due on April 15. Interest starts accumulating on any tax debt from the April 15 due date.
The Internal Revenue Service (IRS) recently released information to help international taxpayers including three new online videos. These resources help explain how federal rules apply and discuss tax benefits.
The resources include a step-by-step video which can help you determine whether you must file by answering a number of questions. The other videos discuss claiming the foreign earned income exclusion and applying for an Individual Taxpayer Identification Number if needed.
Schedule B & Form 8938
U.S. citizens and resident aliens must report any worldwide income, which includes income that they receive from foreign trusts as well as foreign bank and securities accounts. Usually this information is included on a Schedule B attached to the tax return and requires the taxpayer to disclose the country where each of the foreign bank or securities accounts are located.
Additionally in some cases, taxpayers may also need to complete and attached Form 8938. This form is required when the total value of foreign assets exceeds certain thresholds, which our past article discusses.
Your situation may be complicated and the online resources may fail to answer your questions. The IRS might could also question why you have not filed a return or audit your return. In these situations, seek guidance from a skilled tax attorney.
Source: IR-2015-85, New YouTube Videos, Online Resources Help Taxpayers Abroad, June 4, 2015