The IRS is reminding taxpayers living and working outside the United States to file their 2023 federal income tax return by June 17. 

This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. 

U.S. citizens or resident aliens residing overseas or on duty in the military outside the U.S. are allowed an automatic two-month extension to file their tax return and pay any amount due. A taxpayer qualifies for the June 17 extension to file and pay if: 

• They are living outside of 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 serving in the military outside the U.S. and Puerto Rico on the regular due date of their tax return. 

To use the automatic two-month extension, taxpayers must attach a statement to their tax return explaining which of the two situations listed earlier applies. 

As a reminder, an extension of time to file a return does not grant an extension of time to pay taxes owed. Eligible taxpayers should estimate and pay any owed taxes by the June 17 deadline. 

• Taxpayers who can’t meet the June 17 due date can request an automatic six-month extension by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. 

• Taxpayers who need an extension of more than six months to meet either the bona fide residence or the physical presence test to qualify for the foreign earned income exclusion or to exclude or deduct the foreign housing costs must file IRS Form 2350, Application for Extension of Time to File U.S. Income Tax Return. 

• Businesses that need more time must file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns. 

• Members of the military stationed abroad or in a combat zone during tax filing season may qualify for an additional extension of at least 180 days to file and pay taxes. More information can be found in the Extension of Deadline – Combat Zone Service Q&As. 

• Spouses of individuals who served in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and more military tax information is available in IRS Publication 3, Armed Forces’ Tax Guide. 

The IRS encourages anyone needing additional time to file an extension electronically. Filers may use IRS Free File regardless of income, to request an automatic extension of time to file or choose from several options at IRS.gov/Extensions. 

U.S. citizens or resident aliens’ world-wide income is generally subject to U.S. income tax, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B, Interest and Ordinary Dividends, to their Form 1040 series tax return. Part III of Schedule B asks about the existence of foreign accounts such as bank and securities accounts and usually requires U.S. citizens to report the country in which each account is located. 

In addition, certain taxpayers may also have to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets. Generally, 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. For details, see the instructions for this form. 

Further, separate from reporting specified foreign financial assets on a tax return, certain foreign financial accounts, such as bank accounts or brokerage accounts, must be reported by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR), with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The FBAR requirement applies to U.S. persons with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2023. 

The IRS encourages U.S. persons with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is available only through the Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR is April 15, 2024. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15, 2024. There’s no need to request this extension. See FinCEN’s website for further information. 

Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars.