June 15th extension qualification

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WiseGuy
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Joined: Sat Jun 18, 2005 12:17 pm

June 15th extension qualification

Post by WiseGuy » Wed Apr 18, 2007 10:11 am

Do Canadian citizens and U.S. non-residents living in Canada qualify for the automatic 2 month IRS Out of Country extension? Form 4868 seems to say it applies only to U.S. citizens and 'residents' living abroad.

Thanks.

nelsona
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Post by nelsona » Wed Apr 18, 2007 10:35 am

Technically this applies only to US citizens and LPRs. You should probably file 4868 and get 6 month extension.

If you are filing a 1040 (as opposed to a 1040NR) one could argue that a treaty non-discrimination applies, but that would be a bit heavy-handed IMO. If you are filing a 1040NR however, you need to extend with 4868.

That said, you are filing the extension late, and if you did have a balance due on the 18th, you will be penalized for not extending.

In any case, if you have not paid the taxes that you owe by the 18th, you will be charged interest, regardless of extensions, automatic or not.

Remeber too, that if you end up owing a balance on your tax return, there was no need to fiel extension, in the first palce.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

WiseGuy
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Joined: Sat Jun 18, 2005 12:17 pm

Post by WiseGuy » Wed Apr 18, 2007 11:05 am

Thanks Nelson,

So what your saying is that any Canadian citizen or 1040NR filer living abroad who files the 4868 extension after the April 17, 2007, deadline would be denied any extension?

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Wed Apr 18, 2007 11:48 am

Depends what you mean by 'denial'. The IRS will accept your return whenever you hand it in, be it 30 days or 30 months from now. They would probably charge late filing penalty on top of interest and late payment penalty. You would be hard-pressed to be able to contest any penalty.

All these 'extensions' are really nothing more than the IRS giving you a method of making one last tax payment for the past tax year -- without filing your taxes.

Even if you file the extension, there is nothing that prevents IRS from charging late payment penalty. This is separate from the late FILING penalty.

If you don't file for extension -- or if your extension is denied -- and you owe money, you would be hit with interest, late payment and late filing penalties

Since all penalties and interst are based on you owing money, I would quickly determine if I owe anything and send them a check (using form 4868). That way, even if the % is big, the time and ammount will be small.

If you figure that you do not owe anything, RELAX, and send in your return when it is convenient.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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