What is Form 2350?
Form 2350 or Application for Extension of Time to File U.S. Income Tax Return is an Internal Revenue (IRS) tax form U.S. citizens and resident aliens abroad use when they expect to qualify for special tax treatment.
According to the federal tax agency, Form 2350 enables an individual to ask for an extension of time to file a tax return only if that person expects to File Form 2555 or Foreign Earned Income form and that person needs the time to meet either the bonafide residence test or the physical presence test to qualify for the foreign earned income exclusion, or the foreign housing exclusion or deduction, or both.
An individual meets the bona fide residence test if he or she is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, which is from January 1st through December 31st for taxpayers who file income tax returns on a calendar year basis. The test applies to U.S. citizens and U.S. resident aliens who are citizens or nationals of a country with which the U.S. has an income tax treaty in effect.
On the other hand, to meet the physical presence test, U.S. citizens and green card holders living abroad must be physically present in a foreign country or countries for at least 330 full calendar years during a period of 12 consecutive months. The 330 days do not have to be consecutive and for job purposes; the days could be for vacation purposes.
It is important to take note that if you are in a foreign country due to an existing violation of any U.S. law, you will not be treated as a bona fide resident or as physically present in a foreign country.
The IRS instructs taxpayers to not file Form 2350 more than once for each move overseas. If they meet the qualifications for the bona fide residence test or the physical presence test and remain abroad continuously for the following tax year or years and need an extension, they should file Form 4868 or Application for Extension of Time to File U.S. Income Tax Return form.
How to fill out Form 2350?
Form 2350 is a single-page tax form that requires your personal and extension request-related information. Remember to provide your information completely and accurately to avoid any problems with your application for an extension.
For the first section, provide the following information:
- Your full legal name.
- Your social security number.
- If a joint return, the full legal name of your spouse.
- If a joint return, the social security number of your spouse.
- Your home address. If you have a foreign address, enter only the name of the city then write on the succeeding boxes the name of the foreign country, foreign province or county, and foreign postal code.
For the numbered items, follow these instructions:
Enter the dates related to your request to file your income tax return.
Answer if you were previously granted an extension of time to file for this tax year or not. You can mark the Yes or No.
Answer if you will need additional time to allocate moving expenses. You can mark the Yes or No box.
Enter the date of your first arrival in the foreign country.
Enter the beginning and end date of the qualifying period.
Enter your foreign home address.
Enter the date you expect to return to the U.S.
Enter the amount of income tax paid with this form.
Signature and Verification
Sign and date the form for validation. If a joint return, your spouse should also sign and date the form. If the form was prepared by a representative, he or she must sign and date the form.
The Notice to Applicant section is to be completed by the IRS.
Enter your taxpayer’s name and agent’s name if applicable. If a joint return, provide the name of your spouse.
Provide your address.
How to file Form 2350?
If you are filing Form 2350, remember that it does not extend your time to pay taxes. If you fail to pay taxes due by April 15, the deadline to file and pay federal taxes, you will owe interest and may be charged penalties. File Form 2350 on or before the due date of your Form 1040 or 1040-SR.
According to the IRS, if you have two extra months to file the form due to being “out of the country,” which means that on the regular date of your return you live outside the U.S. and Puerto Rico and your main place of work is outside the U.S. and Puerto or you are in military or naval service on duty outside the United States and Puerto Rico, you can complete and submit the form on or before June 15.
You can file Form 2350 electronically or by mail. To file electronically, look for online filing sites affiliated with the federal tax agency that lets you fill out and submit forms with ease. You may refer to your tax software package or tax preparer for ways to file electronically. To file by mail, send the form to:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0045
You may also file the form by submitting it to a local IRS representative or employee.
The period of extension is generally a date 30 days after the date on which you expect to meet either the bona fide residence test or the physical presence test. If you must allocate moving expenses, an extension of up to 90 days after the end of the year following the year you moved to a foreign country may be granted.