# Additional Free Extensions for US Taxes



## helloworld999 (Jun 23, 2014)

Hi,
I am an American, but haven't been back to the US in almost 2 years, and might never go back there to live and work. This year got the best of me, and I still haven't filed my US taxes yet. I realized that there was a free extension until sometime in June, but I think that I missed that deadline. Technically, I think I owe no taxes because I made less than the amount in which one is required to file US taxes. I would like to file just to have it on file to cover myself in the future, and also because I have considered renouncing my citizenship in the future, but heard that one needs to have at least 5 years of tax records in order to do it. So basically, I would like to know if there are any free extensions that I might be able to get. If so, please help me with this. If there are no available free extensions, then, what kind of fees might I get if I file now? I mentioned that I probably don't even need to file, and I know that I don't owe any taxes because I could use the Foreign Earned Income Exclusion, but I imagine that IRS might try to give me fees anyway.


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## Nononymous (Jul 12, 2011)

There's no penalty for filing late if you don't owe anything anyway - the penalty is a percentage of taxes owed (so if you owe zero, that's your penalty). 

If you're under the limit for the FEIE, file whenever, it won't cost you.


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## BBCWatcher (Dec 28, 2012)

Nononymous said:


> If you're under the limit for the FEIE, file whenever, it won't cost you.


Well, it's _slightly_ more complicated than that. One reason is that the FEIE cannot always shield all income even if the FEIE is available and used. A good example is self-employment income which, if earned in China (where the original poster is) and in many other countries, would attract U.S. self-employment tax. The SE tax (Social Security and Medicare payroll tax) is not avoidable via the FEIE.

Get your FBAR (FinCEN Form 114) for 2013 filed within the next few days if you're required to file one. It's due June 30, and you can file it electronically. But don't wait until the very last minute since the first time around it'll take you a little while to figure out how to file. There is a published penalty for late filing FBARs, though at present the penalties are routinely waived for voluntary, unprompted compliance, at least for U.S. persons living outside the U.S. Even so, I'd get it filed on time.

It would also be prudent to run through your U.S. tax return calculation now. True, if you legitimately don't owe any U.S. income tax there's no penalty for filing late. But that's the issue: do you owe any U.S. income tax? It's best to answer that question sooner rather than later to avoid possible interest and penalties. Answering that question _reliably_ can be almost as time consuming as just filing your tax return -- though your mileage may vary -- so you might as well just file your tax return.

In some cases you don't want to wait because you may be due a refund from the IRS. This is particularly true when you do not take the FEIE (and instead take the Foreign Tax Credit exclusively), although there are even a few cases where you can qualify for refunds even when taking the FEIE. We just heard about an example in this forum relating to the American Opportunity Tax Credit. The Additional Child Tax Credit also appears to be available even when taking the FEIE. The sooner you file, the sooner you get your refund.

Any refunds you are owed for tax year 2010 and prior tax years are now (as I write this) gone forever. The very last day to collect any such refunds was June 16, 2014, and then only if you were living overseas in early 2011 and thus your original filing deadline was June 15, 2011.(*) And then only if you attach the overseas residence statement to your tax return as described in IRS Publication 54. The IRS gives you a maximum of 3 years from your standard filing deadline to collect any refunds owed.

(*) Occasionally the IRS grants a one-time special tax filing deadline extension for a particular category of individuals. Examples in the past have included soldiers deployed to combat areas and victims of natural disasters. You may have qualified for an extended deadline in such circumstances. However, filing to extend your deadline to October 15 -- the "automatic extension" -- does not extend the 3 year deadline to claim any tax refunds.

Note this is the deadline to _claim_ refunds, not the deadline for refunds to be paid. Your claim might end up in dispute with the IRS. (Usually not, but it's possible.) As long as you're responding to the IRS's inquiries about your claim in timely fashion then you haven't waived your claim to those refunds even if the dispute drags on for some period of time.


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## Bevdeforges (Nov 16, 2007)

If you're of the KISS persuasion (Keep It Simple, Stupid) you can simply go with Nononymous' advice - no taxes, no penalties. Or, if you're worried about it, you can file for an extension (form 4868). You are supposed to give a "reason" but basically, you can list something vague like "family issues" or "work obligations" and let it go at that. 

One caveat is that, if you file late primarily to claim some kind of refund or refundable tax credit, that will elevate your return in the IRS eyes as being perhaps "review worthy." To just get the obligation out of the way, simple is quickest and easiest.
Cheers,
Bev


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