IRS Issues Tax Dues Deadline Reminder for US Citizens Living Abroad

The agency will charge interest on any 2024 tax dues owed after April 15.

The Internal Revenue Service (IRS) in Washington on March 10, 2025. Madalina Vasiliu/The Epoch Times

Taxpayers living and working abroad must file their tax year 2024 returns and pay off dues by June 16, the Internal Revenue Service (IRS) said in a May 22 statement.

“U.S. citizens or resident aliens residing overseas or in the military on duty outside the U.S. are allowed a two-month extension to file from the normal April 15 deadline. Since June 15 falls on a Sunday in 2025, the deadline is delayed to Monday, June 16,” the agency said. The June deadline is also applicable to those with dual citizenship.

An automatic extension is granted to taxpayers if they live and do business outside the United States and Puerto Rico. An extension is also automatically granted to taxpayers in military or naval service who are on duty outside the United States and Puerto Rico.

When filing returns, taxpayers must attach a statement clarifying which of these two situations applies to them.

If taxpayers cannot file by June 16, they can request an automatic extension that can postpone the filing date to Oct. 15.

“However, an extension of time to file is not an extension to pay,” the IRS said. “Interest will apply to any 2024 tax payments received after April 15, 2025.”

Taxpayers who were affected by the Oct. 7, 2023, terrorist attacks against Israel or those who live in the Jewish state, Gaza, or the West Bank have time until Sept. 30 to file and pay taxes due from Oct. 7, 2023.

“The IRS automatically identifies taxpayers whose principal residence or principal place of business is located in the covered area based on previously filed returns and applies relief,” the agency said.

In some cases, the IRS can exclude income from being taxed if the taxpayer served in a combat zone. To be eligible, the individual must be a member of the U.S. Armed Forces. Excludable income includes basic pay, leave benefits, hostile fire pay, and reenlistment or continuation bonuses.

“There is no required action for you to receive the exclusion. Each military organization will automatically certify your entitlement by excluding reportable income on your W-2. If you believe you are entitled, and your W-2 reflects your full, unadjusted annual pay and benefits, contact your military pay office to issue a corrected W-2,” the IRS advises.

The agency reminded taxpayers abroad that all incomes received and deductible expenses paid in foreign currencies must be reported in U.S. dollars on their returns. All tax payments must also be in dollars.

Penalties

Taxpayers whose deadline fell on April 15 and have not yet filed returns or paid taxes should immediately consider filing and paying off dues as the IRS charges interest and penalties in such cases.

A failure-to-file penalty charges 5 percent on the taxes due for each month the return is not filed. The penalty can accrue up to 25 percent of the unpaid dues.

The failure-to-pay penalty is charged at 0.5 percent monthly. Failure to pay penalties can also accrue up to 25 percent.

“If both a failure to pay and a failure to file penalty are applied in the same month, the failure to file penalty will be reduced by the amount of the failure to pay penalty applied in that month,” the IRS said.

“For example, instead of a 5 percent failure to file penalty for the month, we would apply a 4.5 percent failure to file penalty and a 0.5 percent failure to pay penalty.”

Billy Long, President Donald Trump’s nominee to head the IRS, testified in front of the Senate Finance Committee on May 20, vowing to improve the agency to better serve taxpayers.

Long said taxpayers have frequently complained about poor customer service and delayed refunds, which are two issues that he pledged to rectify if appointed.