The Internal Revenue Service encourages taxpayers living and working abroad to file their 2024 federal income tax return and pay any tax due by Monday, June 16, 2025.
The deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.

Who is eligible for the extension?
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.

A taxpayer qualifies for this automatic extension if:
They are living outside the United States and Puerto Rico and their main place of business or post of duty is outside the United States and Puerto Rico, or
They are in military or naval service on duty outside the United States and Puerto Rico.
To use the extension, taxpayers need to attach a statement to the return indicating which of these two situations applies.

Can’t file by the deadline?
Taxpayers can request an automatic extension to Oct. 15, 2025, if they can’t file by the June 16 deadline. However, an extension of time to file is not an extension to pay and interest will apply to any 2024 tax payments received after April 15, 2025.

It’s fast and easy to get an extension to file your tax return because IRS offers several electronic options for making a request. Taxpayers can also get an extension when paying a tax bill electronically.

Taxpayers who are unable to request an extension electronically can complete and mail Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Businesses must request an automatic 6-month extension by filing Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns.

Tax payments
The fastest and easiest way to make a tax payment is through an IRS Online Account, IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS).

Taxpayers living abroad who do not have a U.S. bank account are able to transfer money directly to the IRS, visit Foreign electronic payments for more information.

Taxpayers can also pay with a debit card, a credit card or a digital wallet, though service providers may charge a fee for this option. Visit Make a payment to learn more.

Extensions for taxpayers in combat zones and Israel
Members of the military stationed abroad or in a combat zone during tax filing season may qualify for automatic extensions. Visit the IRS’ dedicated webpage, Tax information for members of the military, which provides questions and answers on combat zone tax provisions and review IRS Publication 3, Armed Forces’ Tax Guide for more information.

Taxpayers affected by the terrorist attacks in the State of Israel, who live or have a business in Israel, Gaza or the West Bank and certain other taxpayers have until Sept. 30, 2025, to file and pay. This includes most returns and taxes due from Oct. 7, 2023, through Sept. 30, 2025, including Form 1040 and 1120 series returns.

Get tax benefits by filing
Taxpayers living outside the U.S. may be eligible for tax benefits by filing a U.S. return such as the foreign earned income exclusion and the Foreign Tax Credit. See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad for more details.

Reporting foreign financial accounts to Treasury
Foreign financial accounts, such as bank accounts or brokerage accounts, must be reported to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The FBAR requirement applies to anyone with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2024.

Taxpayers with foreign assets, even relatively small ones, should check if this filing requirement applies to them. To access the form, taxpayers must visit Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR is April 15, 2025. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15, 2025. There’s no need to request this extension. See FinCEN’s website PDF for further information.

Reporting required for foreign accounts and assets
U.S. citizens and resident aliens need to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts, as required by federal law. Generally, affected taxpayers need to complete and attach Schedule B, Interest and Ordinary Dividends, to their Form 1040 series tax return. In Part III of Schedule B, the existence of foreign accounts such as bank and securities accounts, usually requires U.S. citizens to report the country in which each account is located.

Many taxpayers may also need to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets. For the most part, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. Taxpayers can consult the instructions for this form for more information.

Taxpayers must report and pay in U.S. dollars
Taxpayers abroad must report any income received or deductible expenses paid in foreign currency on a U.S. tax return in U.S. dollars. This also applies to any tax payments.

Both FinCEN Form 114 and IRS Form 8938 require the use of a Dec. 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign currency and currency exchange rates.

Reporting requirements for expatriates
Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the U.S. during 2024 must file a dual-status tax return. For more detail, forms and instructions review IRS Publication 519, U.S. Tax Guide for Aliens.

Source: IRS-2025-61, May 22, 2025

The Internal Revenue Service is facing a busy and uncertain future, with major staffing cuts, a decrease in funding, and turnover — including a veritable revolving door of acting commissioners, as Gary Shapley was replaced just days after Melanie Krause stepped down — with more cuts by DOGE looming ahead.

Ian Comisky, a partner at law firm Fox Rothschild LLP, believes the IRS “is not operating properly” and is being “taken apart.”

Comisky, who specializes in civil and criminal tax litigation, anticipates growing and continued chaos. The IRS is currently at least 20% understaffed, and that will only grow as cuts continue, he predicted. The agency was given more money in the Inflation Reduction Act of 2022 to improve its efficiency, but of that a huge amount was clawed back. Of the amount designated, cuts were made across the board, affecting enforcement, operations, modernization and taxpayer support services.

“The latest studies show that mostly enforcement dollars were reduced, and in the last go-round modernization resources were also cut,” said Comisky. “There was a voluntary reduction in force last month. Criminal agents that could help deal with noncompliance have been sent to the border. Some say we could lose as much as $1.6 trillion in revenue, although one view is that we can get enough from tariffs to make it all up.”

The current situation is that there are not enough resources for audits necessary to keep the system honest, while modernization is not being pursued.

There has also been a tremendous brain drain, according to Comisky: “The people that are left are less experienced. The appeals unit is reluctant to settle cases for fear of criticism. If they cut enforcement without modernizing, the agency can’t operate effectively.”

The reality is that cuts are being made across the board, according to Kelly Myers, a 30-year IRS veteran who now heads up Myers Consulting Group LLC.

“The cuts are not restricted by job or by office or to overhead-type individuals,” he said. “And not to outreach folks or compliance staff. It’s everybody. There will have to be a transition to a balance between how they execute their priority mission with the people they will have. Response times will be longer because they simply have fewer people. Filed returns with no exception on the return should come out OK. But if there is an exception, someone has to look at it and that will take longer to resolve. For example, 16 weeks will become 20 weeks. Likewise, amended returns have to be manually processed.”

Is this all by design? The effect has not been anticipated, according to Comisky. “The smartest, and those who can work elsewhere, are leaving now,” he explained. “Some of the big law firms believe that there will be no tax litigation for the next couple of years. Some are predicting that the feds will get the benefit of state audits. The sense is, if there is no enforcement, school’s out!”

Intuitively, Myers said he expects that all this means revenue will be down, but he’s not sure how much it will be down. “I’ve had exams that have been closed, shut down because of lack of staff. There are things the IRS would have asked questions about at an earlier time, which would have clarified issues, but they’re not asking questions anymore.”

“When there is less coverage, noncompliance will increase, since no one is looking over your shoulder,” he added. “Some things will not get done. As a former commissioner said some years ago, they won’t do more with less resources, they’ll do less with less resources.”

Source: Accounting Today

As the May 15 filing deadline approaches for tax-exempt organizations, the Internal Revenue Service highlights important forms and topics to ensure successful and timely filing.

The annual filing due date for certain returns filed by tax-exempt organizations is the 15^th day of the 5^th month after the end of an organization’s accounting period. Those operating on a calendar year basis must file a return by May 15. Returns due include:

• Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
• Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

Electronic filing

Electronic filing ensures acknowledgement that the IRS has received the return and reduces processing time, making it easy to comply with reporting requirements. Organizations should remember the following when e-filing:

• Organizations filing a Form 990, 990-EZ, 990-PF or 990-T for calendar year 2023 must file their returns electronically.
• Private foundations filing a Form 4720 for calendar year 2023 must file the form electronically.
• Charities and other tax-exempt organizations can file these forms electronically through an IRS authorized e-file provider.
• Organizations eligible to submit a Form 990-N must do so electronically and can submit it through Form 990-N (e-Postcard)on IRS.gov.

Common errors

The IRS encourages organizations to thoroughly review their forms to avoid common errors such as missing or incomplete schedules. If an organization’s return is incomplete or is the wrong return for the organization, the return will be rejected.

Extension requests

Tax-exempt organizations may request a six-month automatic extension by filing a Form 8868, Application for Extension of Time to File an Exempt Organization Return PDF. In situations where tax is due, extending the time for filing a return does not extend the time for paying tax.

Online workshops

The IRS provides online workshops to help tax-exempt organizations comply with filing requirements. These workshops are designed to help organizational leadership understand the benefits, limitations and expectations of exempt organizations.

Press: IRS-2025-54, April 25, 2025