Are you are a non-resident alien receiving U.S source income? Examples of US source income include rental income from a property located in the U.S or distributions from a company formed in the United States. If you realize too late that you need to declare your U.S source income to the Internal Revenue Service (IRS), you might be able to get an extension of time.
FILING REQUIREMENTS FOR NON-RESIDENT ALIENS:
Generally, a nonresident alien must report all U.S source income on Form 1040 NR.
Deadline to File a Return
The rule under Internal Revenue Code Section 6072(c) is:
Returns made by nonresident alien individuals (other than those whose wages are subject to withholding under chapter 24) . . . under section 6012 on the basis of a calendar year shall be filed on or before the 15th day of June following the close of the calendar year and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the 6th month following the close of the fiscal year.
Thus, if you are using a calendar year as tax year, your filing deadline is June 15.
Extension of Time to File a Tax Return
If you require more time to file a tax return, you can apply for an extension by filing Form 4868.
A properly and timely-filed Form 4868 extends the filing deadline for a nonresident alien to until December 15, this extension is NOT automatic.
The time prescribed in Section 6072(c) of the Internal Revenue Code for filing the tax return is June 15.
A taxpayer can get an automatic six month extension for filing the tax return pursuant to Treasury Regulations Section 1.6081-4(a) :
(a) In general. An individual who is required to file an individual income tax return will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the individual files an application under this section in accordance with paragraph (b) of this section. In the case of an individual described in §1.6081-5(a)(5) or (6), the automatic 6-month extension will run concurrently with the extension of time to file granted pursuant to §1.6081-5.
However, this automatic extension does not apply to a nonresident alien. An individual described in Treasury Regulations Section 1.6081-5(a)(5) or 1.6081-5(a)(6) is a U.S. citizen or resident living abroad.
Thus, a non-resident alien who needs an extension of time to file their return, MUST file form 4868.
Deadline to Pay Tax Liabilities
What if you have a tax liability? What is the payment deadline for the tax payment?
The general rule is that income tax is due and payable at the time and place fixed for filing the tax return.
Internal Revenue Code Section 6151(a) says:
Except as otherwise provided in this subchapter, when a return of tax is required under this title or regulations, the person required to make such return shall, without assessment or notice and demand from the Secretary, pay such tax to the internal revenue officer with whom the return is filed, and shall pay such tax at the time and place fixed for filing the return (determined without regard to any extension of time for filing the return).
“Except as otherwise provided in this subchapter.” “This subchapter” refers to Title 26, Subtitle F, Chapter 62, Subchapter A of the United States Code. (Title 26 of the United States Code refers to the “Internal Revenue Code”). Subchapter A includes Sections 6151 through 6159 and there is no exception in Sections 6151 through 6159 of the Internal Revenue Code that would apply to a nonresident alien.
A non-resident alien individual who must file Form 1040NR must — if tax is due — pay that tax on or before June 15. An extension of time to file a tax return does not extend the time for payment of the tax due. Internal Revenue Code Section 6151(a); Treasury Regulations Section 1.6151(a)(1).
Authored by Beatrice Bianchi Fasani
Barbosa Legal is a boutique international law firm located on the historic Lincoln Road in the heart of Miami Beach, Florida. The primary focus of the firm is to aid international citizens that desire to invest in the United States, specifically navigating the complexities of the United States tax codes and how they interact with international laws.
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You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset.