AUTOMATIC EXTENSION TO JUNE 15, 2007 FOR EXPATS

Expatriats living and/or working abroad on 4/17/07 (this is the due date for your 2006 tax return) receive an automatic extension from the IRS to file their 2006 Federal return until 6/15/07. However, you must pay any tax that is owed into the IRS by April 17, 2007 to avoid a small 1/2% per month late payment penalty if you chose to pay later. This rule applies for some states and not for others. You need to confirm with the state in which you are filing a return if it has adopted this rule.

You can further extend your federal return to 10/15/07 if you file an extension by June 15th using IRS form no 4868. Remember it is best to file these forms certified mail return receipt or by an approved overnight delivery service method. The IRS does lose and misplace paperwork it receives, but leaves you with the burden of proof to show you filed the missing form.