How Form 2350 Abroad 2023-2024

Hi, I'm Brett Willoughby, a CPA. Today, we're going to talk about extensions. We file extensions for most of our clients. Nothing bad comes from filing an extension; they are a good thing. The IRS has made it easy for us to e-file extensions. They used to require two extensions per year, but now you can just do one that takes you all the way to October 15. An extension is an extension of time to file. It gives us a chance to review your tax return, prepare it, and give it all the time it needs without the pressure of the March 15th and April 15th tax season. There are three types of extensions we can do. The first one that most people are familiar with is the automatic extension. If you're living and working overseas on April 15th, you can get an automatic extension till June 15th. The second type of extension is a Form 4868. We file this for all our clients who haven't filed yet, even if they're overseas. This is because many times people come back unexpectedly, and we want to prevent any penalties. So, by filing an extension, it saves on penalties. When doing an extension, we estimate how much tax is going to be owed. For example, on this person, we can see that the estimated tax projection we did in February-March was about $2,200. They have already paid $1,500, so they need to pay in $700 on April 15th in order to avoid penalties and interest. It's a simple thing, and we file it so the money can come directly from your account. The third type of extension is a Form 2350. This allows us to have enough time to file a tax return before January 31st or January 30th of the subsequent year....