Mark the Calendar, 10/16/2023
The U.S. Tax Returns for Individuals
The extended deadline for the U.S. individual income tax returns is approaching soon!
If you are a U.S. citizen, green card holder, resident alien, or non-resident alien, the extended deadline is almost here. October 16, 2023, is also a default automatically extended deadline for submission of FBARs (FinCen 114).
Missing the deadline can be expensive, especially if there are international information returns involved.
International Information Returns are also due
Note down a couple of items that may bring extra penalties and stresses:
- Do not forget to make a list of all the foreign assets you had in 2022. Depending on the thresholds there might be a filing requirement of form 8938 and/or FBARs. Missing either of these forms can result in substantial penalties.
- If you are a U.S. citizen, green card holder, or resident alien; and have a foreign corporation, you are required to file another information return i.e. Form 5471. Form 5471, Information return of U.S. persons with respect to Certain Foreign Corporations, is complex and can be very time-consuming. Bear in mind that there is a modified reporting requirement for non-resident aliens who file treaty-based positions.
- If you have a sole proprietorship, disregarded entities or branches in Canada (or anywhere outside the U.S.) you are also required to file an additional international information return, i.e. 8858. Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs). Post TCJA, U.S. taxpayers are also subject to similar reporting even for their investment properties generating rental income.
- Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. This information return does not get extended beyond October 16th, even if you get an extension until December 15.
- If you hold shares of PFICs, an information return is required for each PFIC. Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund is required to be filed with the U.S. tax returns. Though not filing the form does not bring any penalty, however, it can cause the tax returns to remain open. These assets if not reported on 8938 can also bring penalties.
- File all the treaty-based return positions, Form 8833.
- Other similar information returns are equally important. For example, Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
A further extension up to December 15th, 2023 is possible, with the IRS consent.
File your U.S. Tax Returns and Information Returns
- Refer to our checklists and gather information.
- Getting a quote for the U.S. income tax return preparation is quick and easy. Complete our request form and we should get back to you within one business day. As we get closer to deadlines, our availability is limited, however, it is possible to handle the special requests.