Paying Taxes To The Irs From Thailand

[gregb]

So the date I have been dreading is fast approaching, and I am trying to figure out the logistics of how I am going to pay Uncle Sam. I have never needed to do this before.

Let me start by saying I have no US bank account, but do owe a fairly significant sum of money to the man. Substantially more than I could Western Union for example. I have checked everywhere and can not find a SWIFT code or instruction for an international wire transfer to the IRS. Does anyone know how they expect you to pay from overseas?

Also, without a work permit, are the Thai banks going to allow me to wire the money to pay the taxes I owe? Any advice from someone who may have faced this problem previously would be appreciated.

[kurtmartens]

There should be a way to transfer money directly from the bank to the USG - I do this from my US bank. If you don't get an answer here, send me a PM. I have emailed my tax attorney in the States for an answer.

[Pib]

Got a credit card? If so, you can pay Uncle Sam that way.

[rakman]

You should be able to mail a cashiers check from the bank..

[calbts2]

This is the easiest way - electronic debit from US bank account.

https://www.eftps.gov/eftps/

http://www.irs.gov/efile/article/0,,id=98005,00.html

[Sateev]

This is the easiest way - electronic debit from US bank account.

https://www.eftps.gov/eftps/

http://www.irs.gov/efile/article/0,,id=98005,00.html

Read much?

The OP clearly states that he has no US bank account. Sheesh...

[IMA_FARANG]

gregb:

First of all...do you realise that living or temporabily residing outside the U.S. you can qualify for a 60 day extension of the filing date until 15 June versus 15 April?

However, if you owe taxes due...this will only give you a delay in filing...any interest on any unpaid tax (tax not paid when filing your return)...will start from April 15th, even though you take that filing date extension until June 15th.

If you hold a U.S. credit card....I believe the IRS allows you to pay your taxes on that card.

If you have a Thai bank account I am pretty sure you can purchase a Bank draft, cashier's check, or whatever-they-call-it that you can then mail to your poor "Uncle Sam"...the IRS.

But look on their website (do a google or yahoo search) and I expect they will have information on how to pay them.

First go to that IRS website, and see what you find. (I can't give you the site address here...because we're not supposed to post links).

Ooops....well I guess we can post links

www.IRS.gov

Edited March 3, 2012 by IMA_FARANG

[gk10002000]

You can make your payment online using the Electronic Federal Tax Payment System (EFTPS) by logging on to eftps.gov.

I didn't walk through the process but assuming you have a Tax payer ID or Social Security number you can get in and check it out.

GK

[FrankieDimes]

There is a U.S. Post Office located at the U.S. Embassy. I don't know if the post office is open to all U.S. citizens with a passport or not. It is available for active and retired military members. I am sure they sell money orders. This maybe worth a check. There is also the electronic payment system that can be accessed on the IRS website. I have used this system twice in the past to pay, it does require a bank account or credit card. If you don't have a credit card, can't get a money order from the post office, have no one in the United States you trust and is unable to transfer the money from your Thai bank account. My advice would be to contact the IRS and request and extension until you return to the U.S. or figure out something else. By no means ignore the problem. They will have no problem granting you an extension.

[gregb]

Thanks for all the suggestions so far.

I haven't really found any yet that I am sure would work. The credit card idea might work if I prepaid a huge amount so that my credit limit could cover this. The amount I am talking about is over $10,000 USD. However, my credit card is from Thailand, not from a bank in the states.

1) Does anyone know if the IRS site accepts foreign credit cards?

2) The other interesting option is a cashiers check from a Thai bank in USD. Two questions here:

2a. Do Thai banks actually do this? I've never heard of it before.

2b. Will the IRS accept a check drawn on a foreign institution?

According to publication 54 on the IRS website, anything that uses EFTPS requires a US bank account. So I can't use anything that goes through the EFTPS system. I don't know what that means, if anything.

Still can't believe the IRS makes this so difficult. Why can't they simply supply a SWIFT code and account for an international transfer?

[el jefe]

There is a U.S. Post Office located at the U.S. Embassy. I don't know if the post office is open to all U.S. citizens with a passport or not. It is available for active and retired military members. I am sure they sell money orders. This maybe worth a check. There is also the electronic payment system that can be accessed on the IRS website. I have used this system twice in the past to pay, it does require a bank account or credit card. If you don't have a credit card, can't get a money order from the post office, have no one in the United States you trust and is unable to transfer the money from your Thai bank account. My advice would be to contact the IRS and request and extension until you return to the U.S. or figure out something else. By no means ignore the problem. They will have no problem granting you an extension.

"No problem"???? The IRS will definitely NOT grant anyone an extension of time to pay their taxes. Maybe a US resident living in a federal disaster area, but not an expat.

The OP does not say he lives in Bangkok so flying there just to purchase a postal money order may not be the best option.

As others have said. paying by credit card is probably the best option. If he owes more than the limit on his credit card, there is no reason why he can't pay the balance due on his card and make multiple payments between now and April 17. As long as it's a Visa or Mastercard, it can be issued by any bank worldwide.

El Jefe, licensed CPA in NYS (PM me if necessary)

[Pib]

There is a U.S. Post Office located at the U.S. Embassy. I don't know if the post office is open to all U.S. citizens with a passport or not. It is available for active and retired military members. I am sure they sell money orders. This maybe worth a check. There is also the electronic payment system that can be accessed on the IRS website. I have used this system twice in the past to pay, it does require a bank account or credit card. If you don't have a credit card, can't get a money order from the post office, have no one in the United States you trust and is unable to transfer the money from your Thai bank account. My advice would be to contact the IRS and request and extension until you return to the U.S. or figure out something else. By no means ignore the problem. They will have no problem granting you an extension.

"No problem"???? The IRS will definitely NOT grant anyone an extension of time to pay their taxes. Maybe a US resident living in a federal disaster area, but not an expat.

The OP does not say he lives in Bangkok so flying there just to purchase a postal money order may not be the best option.

As others have said. paying by credit card is probably the best option. If he owes more than the limit on his credit card, there is no reason why he can't pay the balance due on his card and make multiple payments between now and April 17. As long as it's a Visa or Mastercard, it can be issued by any bank worldwide.

El Jefe, licensed CPA in NYS (PM me if necessary)

Link to IRS web site and partial quote below regarding extensions. IRS Link regarding extensions.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15.

[el jefe]

There is a U.S. Post Office located at the U.S. Embassy. I don't know if the post office is open to all U.S. citizens with a passport or not. It is available for active and retired military members. I am sure they sell money orders. This maybe worth a check. There is also the electronic payment system that can be accessed on the IRS website. I have used this system twice in the past to pay, it does require a bank account or credit card. If you don't have a credit card, can't get a money order from the post office, have no one in the United States you trust and is unable to transfer the money from your Thai bank account. My advice would be to contact the IRS and request and extension until you return to the U.S. or figure out something else. By no means ignore the problem. They will have no problem granting you an extension.

"No problem"???? The IRS will definitely NOT grant anyone an extension of time to pay their taxes. Maybe a US resident living in a federal disaster area, but not an expat.

The OP does not say he lives in Bangkok so flying there just to purchase a postal money order may not be the best option.

As others have said. paying by credit card is probably the best option. If he owes more than the limit on his credit card, there is no reason why he can't pay the balance due on his card and make multiple payments between now and April 17. As long as it's a Visa or Mastercard, it can be issued by any bank worldwide.

El Jefe, licensed CPA in NYS (PM me if necessary)

Link to IRS web site and partial quote below regarding extensions. IRS Link regarding extensions.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15.

You are, of course, correct. I should stop posting when I should be sleeping.

But yes, this gives the OP plenty of time to file and make multiple payments by credit card.

[TallGuyJohninBKK]

Link to IRS web site and partial quote below regarding extensions. IRS Link regarding extensions.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15.

Pib, you raise an interesting issue re the automatic extensions. The IRS website you linked to says the following about how to obtain that for someone living abroad:

How To Get The Extension

To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension.

Question is... when I used to have my taxes prepared here by a preparer, he always used to attach a typewritten statement to my return just as mentioned above... Not any IRS form or document, just a single sheet paper with a single paragraph explanatory note.

But now that I'm using one of the online tax prep packages to do my own returns and file electronically, how can I accomplish that same result? In TurboTax last year, I saw the generic extension requests, but not one specifically for folks living abroad.

I was happy to avoid having to print out my entire return document and then snail mail it from Thailand to the U.S. with all the attendant risks and potential delays....

Of note, the automatic extension for those living abroad is for time to file AND the due date for paying any owed taxes... not just the date to file.

If I recall right, if you owe taxes and don't pay until the extension date, you'll still be liable for accrued interest on the unpaid amount for that two months, but won't be charged any penalty for late payment.

Edited March 5, 2012 by TallGuyJohninBKK

[Langsuan Man]

There is a U.S. Post Office located at the U.S. Embassy. I don't know if the post office is open to all U.S. citizens with a passport or not. It is available for active and retired military members. I am sure they sell money orders. This maybe worth a check. There is also the electronic payment system that can be accessed on the IRS website. I have used this system twice in the past to pay, it does require a bank account or credit card. If you don't have a credit card, can't get a money order from the post office, have no one in the United States you trust and is unable to transfer the money from your Thai bank account. My advice would be to contact the IRS and request and extension until you return to the U.S. or figure out something else. By no means ignore the problem. They will have no problem granting you an extension.

NO, the US Post Office at the US Embassy is not open for regular expats (the APO at the Embassy is just a sub office of the main APO at JUSTMAG, allowed under the Status of Forces Agreement between the US and Thailand ). You can purchase a cashiers check in US currency at any Thai bank and can use that to pay your tax bill

If this tax bill is going to be a regular occurrence then you had better get a US Bank account otherwise you are going to have this problem from now on and from what I have been told the cashiers check in US currency is expensive

[Pib]

There is a U.S. Post Office located at the U.S. Embassy. I don't know if the post office is open to all U.S. citizens with a passport or not. It is available for active and retired military members. I am sure they sell money orders. This maybe worth a check. There is also the electronic payment system that can be accessed on the IRS website. I have used this system twice in the past to pay, it does require a bank account or credit card. If you don't have a credit card, can't get a money order from the post office, have no one in the United States you trust and is unable to transfer the money from your Thai bank account. My advice would be to contact the IRS and request and extension until you return to the U.S. or figure out something else. By no means ignore the problem. They will have no problem granting you an extension.

NO, the US Post Office at the US Embassy is not open for regular expats (the APO at the Embassy is just a sub office of the main APO at JUSTMAG, allowed under the Status of Forces Agreement between the US and Thailand ). You can purchase a cashiers check in US currency at any Thai bank and can use that to pay your tax bill

If this tax bill is going to be a regular occurrence then you had better get a US Bank account otherwise you are going to have this problem from now on and from what I have been told the cashiers check in US currency is expensive

Actually, I think the Embassy APO is the main post office with the JUSTMAG APO post office being a sub office, athough they share the same APO (ZIP code) number which is really a U.S. Air Force APO. And you can't buy stamps, etc., at the JUSMAG APO, but you can at the Embassy where they also have mailing supplies like Priority Mail envelopes/boxes, etc. But it's really kinda here as to which is the main office. To the best of my knowledge both post offices are indeed limited to military active duty & retirees, U.S. Embassy employees, and other U.S. federal civil servants. But I expect the Embassy has some mailing exceptions/provisions beyond those mentioned. To get to the Embassy post office you must first get through a security entrance door right next to where you enter from the street to access American Citizen Services....you enter the entrance that you see most of the Embassy employees enter, but you first must show proper badge I.D. and/or your U.S. passport to get pass the guards after telling them you need to visit the post office...they will hang onto your passport/ID until you depart.. I have bought stamps at the Embassy post office...I used a U.S. personal check...and if I remember right they only accept cash U.S. dollars or personal checks written against U.S. banks.

[Pib]

Link to IRS web site and partial quote below regarding extensions. IRS Link regarding extensions.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15.

Pib, you raise an interesting issue re the automatic extensions. The IRS website you linked to says the following about how to obtain that for someone living abroad:

How To Get The Extension

To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension.

Question is... when I used to have my taxes prepared here by a preparer, he always used to attach a typewritten statement to my return just as mentioned above... Not any IRS form or document, just a single sheet paper with a single paragraph explanatory note.

But now that I'm using one of the online tax prep packages to do my own returns and file electronically, how can I accomplish that same result? In TurboTax last year, I saw the generic extension requests, but not one specifically for folks living abroad.

I was happy to avoid having to print out my entire return document and then snail mail it from Thailand to the U.S. with all the attendant risks and potential delays....

Of note, the automatic extension for those living abroad is for time to file AND the due date for paying any owed taxes... not just the date to file.

If I recall right, if you owe taxes and don't pay until the extension date, you'll still be liable for accrued interest on the unpaid amount for that two months, but won't be charged any penalty for late payment.

Yea there always seems to be some devil-in-the-details regardless of which of the various extensions of time that a person may be eligible for. See IRS Pub 54, specifically the Extension of Time provisions.

I use to use TurboTax but switched to TaxAct about 5 years ago...IMHO TaxAct is just as good, I like its interface better than TurboTax, and TaxAct is a lot cheaper. I file electronically each year and need to get off my butt and finish my return...other than entering interest earned from Thai bank accounts (interest info which get from the passbook/online since Thai banks don't automatically send out tax-related info) and one misc item, I can hit the file electronically button. I usually want until late March each year to file, even when due a refund like this year, because I guess I"m just a procrastinator...I guess I feel sorry for Uncle Sam and I'm willing to let him use my money to cash flow his bills...I'm such a good tax paying American.

[lopburi3]

One item on TaxAct that does require attention for most expats is that there is no alert or filling out of Schedule B Part III for normal levels of interest/foreign accounts. On download version you can do this manually by calling up the form but this can not be done with the on-line version (which requires you do as below).

If you need to enter information for Part III of Federal Schedule B but do not see those questions in the TaxACT Federal Q&A because you do not have over $1,500 of taxable interest or ordinary dividends, please follow the steps below:

• From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  
• Click Investment Income to expand the section and then click Foreign Investment Account Information
  
• The program will proceed with the interview questions for you to enter or review the appropriate information
  

[TallGuyJohninBKK]

I use to use TurboTax but switched to TaxAct about 5 years ago...IMHO TaxAct is just as good, I like its interface better than TurboTax, and TaxAct is a lot cheaper. I file electronically each year and need to get off my butt and finish my return.

Sorry Pib, I couldn't figure an answer to my question in your post above...

So you're using TaxAct and filing electronically....

So, are you saying (filing in March) that you never use the 2 month extension for expats when filing via TaxAct? Thus don't know how or if it accommodates the expat extension request document for electronic filings...

Or...something else???

BTW, here's the info on the two month extension for expats from the IRS website you linked above:

Automatic 2-month extension. You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U.S. citizen or resident alien, and on the regular due date of your return:

• You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or
  
• You are in military or naval service on duty outside the United States and Puerto Rico.
  

If you use a calendar year, the regular due date of your return is April 15. Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return.

...

How to get the extension. To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension.

Edited March 6, 2012 by TallGuyJohninBKK

[TallGuyJohninBKK]

So let's see if I'm getting this right???

For expats, there are the two-month extensions, and the six month extensions...

The two month extensions give you the extra two months to file, and also allows you to NOT pay any taxes due until the extended date without getting a late payment penalty. But you will be charged interest from the mid April normal filing date for any amounts owed. Not clear how to make that kind of extension request when e-filing.

The 6 month extension gives you the six extra months to file you're formal tax return. But it doesn't extend your time to pay. You're supposed to pay your estimated taxes due by the mid April filing date (even without filing your actual return). And if you don't, you could be charged a late payment penalty as well as interest on the owed amount. But at least, there's the specific Form 4868 that can be e-filed to make that extension request.

[tutsiwarrior]

'snip'...tried to offer an old IRS telephone number in Philadelphia where they could help the OP but tried to call and no longer in service...

when I talked to them about 5 years ago when I was in saudi we did an installment arrangement (it was a large amount) and I sent monthly cashiers checks to an IRS address in the US using EMS...if you go to your thai bank with cash in hand you should be able to obtain a cashiers check in USD...no problem in saudi but I had a USD account with the bank then...at that time they insisted on cashiers checks for payment of past due taxes...

Edited March 6, 2012 by tutsiwarrior

[Pib]

I use to use TurboTax but switched to TaxAct about 5 years ago...IMHO TaxAct is just as good, I like its interface better than TurboTax, and TaxAct is a lot cheaper. I file electronically each year and need to get off my butt and finish my return.

Sorry Pib, I couldn't figure an answer to my question in your post above...

So you're using TaxAct and filing electronically....

So, are you saying (filing in March) that you never use the 2 month extension for expats when filing via TaxAct? Thus don't know how or if it accommodates the expat extension request document for electronic filings...

Or...something else???

BTW, here's the info on the two month extension for expats from the IRS website you linked above:

Automatic 2-month extension. You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U.S. citizen or resident alien, and on the regular due date of your return:

• You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or
  
• You are in military or naval service on duty outside the United States and Puerto Rico.
  

If you use a calendar year, the regular due date of your return is April 15. Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return.

...

How to get the extension. To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension.

Yeap, people need to read the links also.

[TallGuyJohninBKK]

Pib, I guess I was asking.... so it sounds like you've been filing electronically, but haven't been doing the 2 month extension? Thus don't know how to handle that with e-filing???

[Pib]

One item on TaxAct that does require attention for most expats is that there is no alert or filling out of Schedule B Part III for normal levels of interest/foreign accounts. On download version you can do this manually by calling up the form but this can not be done with the on-line version (which requires you do as below).

If you need to enter information for Part III of Federal Schedule B but do not see those questions in the TaxACT Federal Q&A because you do not have over $1,500 of taxable interest or ordinary dividends, please follow the steps below:

• From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  
• Click Investment Income to expand the section and then click Foreign Investment Account Information
  
• The program will proceed with the interview questions for you to enter or review the appropriate information
  

On the TaxAct Deluxe Desktop version I had to click the "Jump to Topics" display and then click the" Foreign Investment Account Information" selection and then it walked through the Q&A or I could have entered it directly into the form. Can also get to it by by entering :"Foreign Investment" in the "Search Answer Center" block which then shows a "Investment Income-Foreign Interest" selection. Does seem TaxAct could have handled this better.

[Pib]

Pib, I guess I was asking.... so it sounds like you've been filing electronically, but haven't been doing the 2 month extension? Thus don't know how to handle that with e-filing???

No, I've never had to use an extension, but had researched it a little once when I thought I may have to do an extension but when the dust settled I was able to file before the mid Apr date. TaxAct does have a module which can walk a person through the process...I expect other tax software has a similar process/section which lines up with IRS regs...I notice in the module it says a person would either have the option to print or efile the federal extension.

I think the IRS Form 4868 Instructions itself gives good guidance on when and how to file an extension if needed. Like on page 2 of the instructions where it says: "Taxpayers who are out of the country. If, on the regular due date of your return, you are out of the country and a U.S. citizen or resident, you are allowed 2 extra months to file your return and pay any amount due without requesting an extension. For a calendar year return, this is June 15, 2012. File this form and be sure to check the box on line 8 if you need an additional 4 months to file your return."

Edited March 6, 2012 by Pib

[TallGuyJohninBKK]

When I did Turbo Tax online last year, they had the standard extension request as part of their package, form 4868 or whatever that number is...

But I didn't see anything about the ex-pats' two month extension, which is a different thing. And as I mentioned above, when my former tax guy here in BKK used to file that with my mailed in tax forms, he was using his own computer generated document/note to request/explain that extension request... Not a specific pre-printed IRS form of any kind.

Somebody here has to have e-filed their federal taxes in the past and requested the two month expats' extension in some fashion or another...

Edited March 6, 2012 by TallGuyJohninBKK

[JimGant]

John,

With TT Desktop, when you go to the "filing an extension" questionaire, it asks something like, "Do you want to file a 4868 extension request?" Or do you want to prepare an "out of country automatic extension statement?" If you choose the latter, it then asks you to explain, in your own words, why you qualify for this out-of-country extension. It then says, "The out-of-country statement will print with your return. If filing electronically, this information will be transmitted with your return." Then, it reminds you that if you can't file by June 15, 2012, that you'll have to return to the extension questionaire and then request the Form 4868, giving you an additional 4 months over the out-of-country allowance.

[Pib]

This TurboTax support Link runs through the different methods of filing an extension using the various different TurboTax online/desktop programs.

[TallGuyJohninBKK]

Jim and Pib, thanks much for your responses above... I guess I'll have to dig into this further with my TT Online package in a few weeks when I get around to culling all this stuff... As for the specifics...

Jim, that's good to know that the TT Desktop package definitely includes an option for the out-of-country extension for both its e-filing and printed/mailed returns. Last year, I used TT online and never saw that option in the online package... But it was my first time using it...so I may have missed it somewhere. I did clearly see and find the form 4868 extension, which I ended up using. But I'll look again this year re the out-of-country item in their online package.

Pib, thanks for the TT support link... When I went thru that, I found only the following one reference:

Note: If you are a U.S. citizen living and working outside the U.S. and Puerto Rico, you may qualify for an automatic two month out-of-country extension without filing Form 4868. TurboTax can help you complete an out of country statement, which will print with your tax return. If eligible, you must complete and file your return by June 15, 2012.

I'm not sure how to interpret that exactly. If I interpreted it literally, I'd assume it to mean it would do that when you print out your return for postal mailing. Not clear what that means if you're e-filing. When I e-file, I don't end up printing out anything. Just e-filing and saving the resulting PDF file. But it's also possible they just used the word "print" but they really meant when you "prepare," whether for mailing or e-filing.

Just for the record, there are significant differences between the two month out of country extension and the standard 6 month form 4868 extension.

With the 6 month extension, you have to file that request by the normal April tax filing deadline and make some estimated payment by that same deadline if taxes are due, or face a late payment penalty. But then you do get the extra six months to actually file your federal return and pay any difference between your initial estimated payment and your final amount owed.

With the two month extension, you don't have to do anything (either filing or payment) by the normal April tax filing deadline. Then, you just file your federal return and pay any taxes due within that additional two month period, No late filing or payment penalty. And just pay interest on any unpaid taxes amount for the period from the normal filing date to the date you actually file and pay.

[JimGant]

I'm not sure how to interpret that exactly. If I interpreted it literally, I'd assume it to mean it would do that when you print out your return for postal mailing. Not clear what that means if you're e-filing.

The following quote, which I had included above, is a direct quote from the TT Desktop package:

"The out-of-country statement will print with your return. If filing electronically, this information will be transmitted with your return."

It's a plain, TT generated statement entitled "Explanation Statement," with your name, social, and your self-provided explanation, e.g.'I live in Thailand, and was not working nor living in the US, or its territitories, on April 17, 2012.' And, as they said, it will get transmitted with your electronic tax filing.

With TT Desktop, it's a different story if you're going the Form 4868 route: there is NO electronic version. You have to print it out, and snail mail it -- with a check. Could also use EFTPS to pay, if you have an account -- or pay a 'service' to pay by credit card. But there is no proviso for a direct debit from your US bank account with the mail-in route.

But, if you wait until mid-March (the service is not yet available), you can use on-line Turbo Tax Easy Extension to electronically file your Form 4868, and have any taxes directely debited from your US bank account. Slick. And if using Turbo Tax Online, and wish to file a Form 4868, you 'll be automatically redirected to TT Easy Extension.

With the two month extension, you don't have to do anything (either filing or payment) by the normal April tax filing deadline. Then, you just file your federal return and pay any taxes due within that additional two month period, No late filing or payment penalty.

There's no free lunch. Uncle understands the time value of money, and he wants it by April 17. Now, you're off the hook for any "late filing" penalty. But, not the "late payment" penalty (however, if you've paid 90% by April 17th of the eventual tax owed, you're off the hook. See http://www.irs.gov/n...=205326,00.html).

A late payment penalty is assessed if you didn't pay additional taxes owed by April 17, whether you filed an extension or not.

The late payment penalty is 0.5% (1/2 of 1 percent) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%.

A late filing penalty is assessed if you didn't file your return (or an extension) by April 17.

The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%.

Now, the IRS can be pretty lenient on this, and has considerable wiggle room. But, I'd do my best to comply....with having paid at least 90% of my estimated tax bill by April 17th.

And, it might be easier to go the online "Easy Extension" route, with its Form 4868 electronic filing, and the ability to direct debit your US bank account, as the "out-of-country" route doesn't provide for the direct debit of any estimated taxes you'll need to pay.

And if you know you'll be getting a refund, you don't have to file anything, extension request nor your 1040. However, you don't get your refund either -- and in April 2015, this refund evaporates into Uncle's treasury.