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Additional extension of time to file for taxpayers out of U.S.

As tax advisers work on extended returns, those with clients living overseas should be aware of new procedures for obtaining an additional two months, beyond the automatic six-month extension currently available by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Thus, out-of-the-country calendar-year taxpayers have until Dec. 15, 2006 to file their returns.

The IRS recently announced how these taxpayers can request the discretionary two-month additional extension; see,,id=154856,00.html. The definition of "out of the country" for this purpose is defined in the Form 4868 instructions.

To request this extension, taxpayers must send the IRS a letter explaining why they need an additional two months. The letter has to be sent by the extended due date (Oct. 16, 2006 for calendar-year taxpayers) to: Internal Revenue Service Center, Austin, TX 73301-0215, USA.

The taxpayer will not receive notification from the IRS unless the request is denied as untimely. The discretionary two-month additional extension is not available to taxpayers claiming the foreign earned income exclusion who have an approved extension to file on Form 2350, Application for Extension of lime To File U.S. Income Tax Return (for U.S. citizens and resident aliens abroad who expect to qualify for special tax treatment).

by Eileen Sherr, CPA, MT, AICPA Technical Manager--Taxation, Washington, DC
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Author:Sherr, Eileen
Publication:The Tax Adviser
Date:Aug 1, 2006
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