You’re from the U.S. and living abroad, but missed filing your taxes before the deadlines as an expat…
What are the tax deadlines you may ask? They are:
- April 15: The normal deadline for Americans living in the US
- June 15: Automatic extension for American expats living outside the US
- October 15: Additional 4 month extension from June 15th, which you need to request through filing!
Missing Tax Deadlines as an Expat
If you DO owe money to the IRS and missed just one of the tax deadlines as an expat, interest will start adding up until you file. Meaning, they could charge you 5% of your unpaid balance every month, plus late fees until you do pay, (or until penalties reach up to 25%). Quite a bummer, huh?
For individuals who can’t afford the penalties, it’s still best to pay your estimated taxes by April 15th anyways to stop the interest piling up. BUT it is possible for the IRS to waive penalty fees if they see you did not purposefully avoid or ignore paying your taxes…
If you knew you had to file/pay taxes and avoided it deliberately (ie: not reporting willfully), and you get caught, this could lead you paying up to 10k or more per year. Yikes. This is why we suggest you follow us to stay up to date on tax deadlines and information concerning your life as a U.S. expat abroad!
Solutions for Missing Tax Deadlines as an Expat
We know it’s best to stay up to date and file on time, but don’t stress if you’re behind… We have the solutions and support you need to catch up!
Firstly, use our software before the June 15th deadline every year to put yourself on the good side of the IRS’ naughty/nice checklist.
Secondly, if you are three years or more behind on filing your taxes, you can apply for the Streamlined Procedure. Essentially, you need to meet the requirements that we explain here So for those who have been living abroad and haven’t filed in 10 years – you may be able to use the Streamlined Procedure and be penalty-free!
We know adulting can be hard, perhaps even more so living abroad…
But getting your taxes in order and on time is seriously one of the best responsibilities to be on top of as a U.S. citizen living abroad. Make sure you choose us as your expat tax solution peeps and you’ll be good to go.