REMINDER: JUNE 15 FILING DEADLINE FOR TAXPAYERS OUTSIDE THE U.S. OR PUERTO RICO

NSTPInternal Revenue Service (IRS), Taxpayer

Friday, June 15, 2018 is the deadline for filing 2017 returns for U.S. citizens and resident aliens whose tax home and abode are outside the U.S. and Puerto Rico, certain military personnel, and partnerships and corporations with certain foreign connections. More specifically, an extension of time for filing income tax returns and for paying any tax shown on the return is automatically granted up to the 15th day of the sixth month following the close of the tax year to: Partnerships which keep their records and books of account outside the U.S. and Puerto Rico and are otherwise required to file returns on the 15th day of the third month following the close of the tax year; (Reg § 1.6081-5T(a)(1)) Domestic corporations which transact their business and keep their records and books of account outside the U.S. or Puerto Rico; (Reg § 1.6081-5(a)(2)) Foreign corporations which maintain an office or place of business in the U.S.; (Reg § 1.6081-5(a)(3)) Domestic corporations whose principal income is from sources within U.S. possessions; (Reg § 1.6081-5(a)(4)) U.S. citizens or residents whose tax homes and abodes, in a “real and substantial sense”, are outside the U.S. and Puerto Rico; (Reg § 1.6081-5(a)(5)) and U.S. citizens … Read More

TAX FILING DEADLINE POSTPONED UNTIL JUNE 29 FOR VICTIMS OF HURRICANE MARIA IN PUERTO RICO AND THE VIRGIN ISLANDS

NSTPInternal Revenue Service (IRS)

The IRS has extended tax deadlines for affected individuals and businesses until June 29, 2018, for the following localities: In the U.S. Virgin Islands (starting Sept. 16, 2017): Islands of St. Croix, St. John and St. Thomas. In Puerto Rico (starting Sept. 17, 2017): In any of the 78 municipalities. The disaster relief page on the IRS website has details on the returns, payments and tax-related actions qualifying for the additional time. Following the IRS extension, affected individuals and businesses will have until June 29, 2018, to file their 2017 tax returns and pay any taxes due on those returns. This relief also includes individual estimated tax payments, payroll and excise tax returns, corporate income tax returns originally due or on extension during the relief period and tax-exempt organizations required to file Form 990 series returns with an original deadline falling during this period. This relief also applies to taxpayers who had a valid extension to file their 2016 return that was due to run out on October 16, 2017, and which was already postponed until January 31, 2018. The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply for 2017 tax returns. The IRS automatically … Read More

IRS PROVIDES TAX RELIEF TO RESIDENTS OF PUERTO RICO AND THE VIRGIN ISLANDS

NSTPInternal Revenue Service (IRS), Tax Relief

The Internal Revenue Service has issued guidance to provide relief to residents of Puerto Rico and the U.S. Virgin Islands who were evacuated or could not return because of Hurricane Irma or Hurricane Maria.  The relief extends the usual 14-day absence period to 117 days (beginning September 6, 2017 and ending December 31, 2017) for the presence test for residency under the tax rules.  Further, an individual who is absent from either U.S. territory on any day during this 117-day period will be treated as leaving or being unable to return to the relevant U.S. territory as a result of Hurricane Irma and Hurricane Maria on such day. There are several exceptions to the general 183-day presence test that require an individual to be in the location where he or she claims residence for 183 days during the tax year.  Usually, residents could include up to 14 days in the 183-day period because of a declared disaster. However, because of the unprecedented and catastrophic damage caused by Hurricane Irma and Hurricane Maria to Puerto Rico and the U.S. Virgin Islands, the Federal Emergency Management Agency has issued Notices of a Presidential declaration of a major disaster for both territories and … Read More