Tax day on April 18th has come and gone, but there is actually another deadline for filing personal tax returns and in some cases business tax returns.
Today is the deadline for filing Form 1040-NR, this is the U.S. Nonresident Alien Income Tax Return. This is also the deadline for foreign organizations to file their business tax returns.
If you forgot your deadline or just realized that you don’t have all the information you need to file on time, there is an option that lets you stay on good terms with the IRS and avoid potential penalties for late filing.
Keep reading for more information on extending your 1040-NR deadline!
What is a Foreign Organization, and Who is required to file?
For foreign corporations that don’t have an office or a business place in the U.S., the deadline to file their business tax returns is the 15th day of the 6th month following the end of their tax year.
This means, if these corporations follow the calendar tax year, the deadline is tomorrow, June 15th.
Also, certain foreign/domestic corporations and partnerships are eligible for an automatic extension under Regulations section 1.6081-5, and their extended deadline is also June 15th.
Can Foreign Organizations request an extension of time to file?
Yes, as long as they haven’t already requested an extension of time for the given tax year, they can request an extension of filing time.
This request can be made using Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.
Form 7004 is an automatic extension, organizations aren’t required to file any reason for making the request. They simply need to provide accurate information on the extension form and file it no later than the deadline of the form they are requesting the extension for.
Upon IRS approval, the organization will be granted up to 6 additional months of filing time.
Who is required to file Form 1040-NR?
As mentioned above, the 1040-NR applies to nonresident aliens. The IRS defines a nonresident alien as any individual who is not a U.S. citizen or U.S. national. They either haven’t passed the green card test or the substantial presence test.
Anyone who falls under this category is required to file a Form 1040-NR whether they have engaged in business activity during the tax year or not. Nonresident aliens that are active in trade or business are treated as U.S. citizens in terms of taxation.
The deadline to file this form with the IRS is June 15, 2023. So if you haven’t filed yet, and you don’t feel that you are able to file today, requesting an extension is your best option.
How do I request an extension of time to file Form 1040-NR?
If you are unable to meet this deadline, you do have the option to file an extension Form 4868 with the IRS today to request additional filing time. Once the extension request is approved by the IRS you will have up to 6 additional months to complete and transmit the Form 1040-NR without the risk of penalties.
Form 4868 is the IRS tax extension that is used to request personal income tax extensions. The Form 4868 is an automatic extension, the IRS doesn’t require any explanation or justification from filers seeking additional time to file their tax return.
As long as you complete your extension correctly with accurate information, the IRS will more than likely approve your extension.
What about IRS tax payments?
It is important to note that while filing a business or personal tax extension is a great option, the extensions don’t extend to the tax payment. The IRS requires that you make your tax payment regardless of whether you file an extension or not.
Failing to make a tax payment on the deadline (today) could result in late payment fees from the IRS. It is recommended that even if you are not able to make the IRS payment in full, making a portion of the payment is the best option for minimizing potential penalties.
How should I file an IRS Tax extension?
There are two methods available for filing Form 4868 and 7004. You can file electronically or mail a paper copy to the IRS.
Filing your form electronically is the better option by far. Not only is the IRS able to process your form at a much faster rate, but you can get instant updates using this method.
Instead of sitting in a mail bin in the IRS backlog, you will know almost immediately whether your extension was accepted or rejected. If it is rejected, this gives you much more time to correct the errors and retransmit the extension.
E-file in minutes with the help of ExpressExtension!
With ExpressExtension, you can count on a fast and easy filing process. Our application is designed to walk you through the process. Need to make an estimated tax payment? You can do so easily and securely by Electronic Funds Withdrawal (EFW) or Electronic Federal Tax Payment System.
What if your IRS Form 4868 is rejected by the IRS? ExpressExtension won’t leave you hanging, we provide the IRS error code so you can understand why the form is rejected. Then, we enable you to correct and retransmit your form at no additional charge.
There you have it, there is a last-minute solution for dealing with tax returns! You can file your extension with ExpressExtension!