IRS Form 4868: How to Request an Expat Tax Return Extension

Given the sheer quantity of IRS forms, schedules, reports, and other documents, the average American can’t be expected to memorize them all. Of course, some forms are more relevant to your circumstances than others — and those are the ones worth reading up on. One critical form for expats to familiarize themselves with is IRS Form 4868.

IRS tax Form 4868 gives taxpayers extra time to file their income tax returns. For expats who are busy filing foreign tax returns, researching United States expat taxes, or otherwise behind schedule on their tax and reporting obligations, Form 4868 can be a game-changer.

Below, we’ll go over everything expats need to know about Form 4868: who qualifies for it, how to fill it out, when to submit it, and more.

US expat tax obligations & deadlines

Before we dive into Form 4868 in particular, let’s clarify US expats’ tax and reporting obligations more broadly.

The vast majority of Americans living abroad have to file US tax returns. While it might not make much sense, all Americans who earn above a certain threshold must file, and potentially pay, US taxes (even expats). Most Americans have their taxes due on April 15th. Fortunately, Americans abroad get an automatic two-month filing extension to June 15th.

Given how complex US expat taxes can be, however, it’s understandable if filing your return requires more time — that’s where Form 4868 comes in.

What is IRS Form 4868?

IRS Form 4868: Application for Automatic Extension of Time To File U.S. Individual Income Tax Return is the form you must file to extend your tax return deadline. After filing Form 4868, the IRS will give you until October 15th to file your tax return.

What does a tax extension do?

A tax extension gives you extra time to complete and submit all of the forms, schedules, reports, and other documents that make up your tax return. However, it does not give you extra time to pay your tax bill. If you expect to owe federal taxes for tax year 2024, you must still make a reasonable estimated payment by April 15th.

Who qualifies for a Form 4868 tax extension?

While Form 4868 is particularly handy for US expats with complex filing requirements, any taxpayer with a Form 1040 filing requirement, including Americans living within the US can file it as well. 

What happens if I don’t file Form 4868?

If you submit your tax return by the June 15th expat deadline, there’s no need to file Form 4868. When you miss the deadline and owe taxes, not filing Form 4868 can lead to failure to file penalties, especially if you have a balance due on your tax return.

The Failure to File Penalty

The Failure to File Penalty imposes a penalty of 5% of your tax bill for every month that your tax return is late. The penalty maxes out at 25% after five months. In some cases, a minimum penalty replaces the standard 5% penalty. Those who file tax returns over 60 days after the original due date, for example, must always pay at least $485.

The IRS counts every portion of a month as a full month for the purposes of calculating the Failure to File penalty. For example, the penalty for filing your tax return three months and one week late would be the same as a tax return that was exactly four months late: 20%.

The Failure to Pay Penalty

Not filing Form 4868 before the tax return deadline may also result in a Failure to Pay penalty if you didn’t pay your tax bill on time. 

Those who fail to pay their full bill incur a .5% penalty for each month they don’t pay their taxes. If you don’t pay the tax bill within 10 days of receiving a notice to levy from the IRS, the penalty increases to 1% per month. Again, this penalty maxes out at 25%. 

Simultaneous Failure to File & Failure to Pay Penalties

If both the Failure to File and Failure to Pay penalties apply in the same month, the IRS will reduce the Failure to File Penalty by the Failure to Pay Penalty.

Example: Tara lives in the UK. Because Tara is an expat, the IRS will use June 15 as her original deadline (instead of April 15) for calculating Failure to File and Failure to Pay penalties. Here’s how her penalties add up, month by month, from June 16 through August 15.

June 16 – July 15 (Month 1)

• Failure to File: 4.5%

• Failure to Pay: 0.5%

• Total for Month 1: 5%

July 16 – August 15 (Month 2)

• Failure to File: 4.5%

• Failure to Pay: 0.5%

• Total for Month 2: 5%

Combined Penalty Rate Over 2 Months: 5% + 5% = 10% of Tara’s unpaid tax. If Tara owed, for example, $10,000 in tax, her penalty would be $1,000 (10% of $10,000).

Expats who accidentally fell behind on their taxes, have not yet been notified by the IRS, and are not currently under audit may be able to catch up penalty-free. The Streamlined Filing Compliance Procedures, an IRS amnesty program, gives qualifying late filers a pathway to compliance with no penalties or interest — just the overdue tax payment.

How to file IRS Form 4868, step by step

Form 4868 is four pages, but the majority of it contains instructions. There is very little information you need to fill out — all the more reason to file it if you need extra time! After reading all of the instructions, you’ll fill out Part I and Part II.

Part I: Identification

In this section, you’ll simply enter your name, address, Social Security Number (SSN), and, if applicable, your spouse’s SSN.

Part II: Individual Income Tax

This section is for entering your estimated tax due. If you don’t expect to owe any taxes, enter 0. If you do expect to owe taxes, you can make an estimate by:

• Gathering & reviewing documentation for any types of income you received over the tax year (e.g. W-2 or equivalent, 1099-MISC or equivalent, ledger of rental payments, etc.)
• Applying adjustments & deductions (e.g. standard deduction, itemized deductions for self-employed expats)
• Calculating your taxable income
• Applying taxes to your taxable income, including ordinary income taxes plus self-employment taxes & the Alternative Minimum Tax (AMT) if applicable
• Applying expat tax breaks like the Foreign Earned Income Exchange (FEIE) & the Foreign Tax Credit (FTC)
• Applying other relevant tax breaks (e.g. the Child Tax Credit, continuing education tax credits)

After arriving at an estimate, you’ll subtract any taxes already withheld or paid to arrive at the balance due. Then, you’ll enter how much you’re paying now (if anything) and check a box to indicate that you live abroad.

Finally, if you haven’t yet made an estimated payment, you’ll need to do so by attaching a check, making a payment on the IRS website, or using tax software to set up an automatic withdrawal from your account.

Submitting Form 4868

If you’re not working with a tax professional, you can either file Form 4868 online or print, complete, and mail it. 

To file online, you may be able to use tax software or IRS Free File. To submit by mail, you’ll need to send Form 4868 to one of two IRS addresses, depending on whether or not you’re attaching a payment along with it.

Where to mail IRS form 4868

If you are attaching a payment along with Form 4868, you’ll address it to:

Internal Revenue Service

P.O. Box 1303

Charlotte, NC

28201-1303

If you aren’t attaching a payment along with Form 4868, you’ll address it to:

Department of the Treasury

Internal Revenue Service Center

Austin, TX 

73301-0215

Let Bright!Tax tackle Form 4868 & beyond

While having your tax return in before the deadline is ideal, sometimes life gets in the way. Filing Form 4868 by the June 15 deadline gives you until October 15th to file your tax return. However, you must still make an estimated tax payment by April 15th to avoid interest and penalties.

If you’re feeling a little overwhelmed, we don’t blame you. US expat taxes can be complex — and the more forms, schedules, and reports you add, the more intimidating they can be. As a dedicated tax firm for Americans abroad, we know US expat taxes — including Form 4868 — inside and out.