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Subscribe28 MAY 2025 / IRS UPDATES
The US Internal Revenue Service (IRS) is leveraging artificial intelligence (AI) to reform case selection and improve audits, following an 11% workforce reduction. American citizens and resident aliens overseas have until June 16, 2025, to file their 2024 federal returns, with the IRS focusing AI models on compliance to streamline the auditing process, suggesting a growing reliance on automation in the taxation sector.
If you’re living it up overseas and thought you dodged the taxman, think again. While most Americans closed their books by April 15, U.S. citizens and resident aliens abroad have until June 16, 2025, to file their 2024 federal returns. This automatic extension applies to those living or working outside the U.S. and Puerto Rico, including dual citizens and deployed military personnel. But that’s not the only IRS news that makes headlines. The agency is in a massive transformation, leaning heavily on artificial intelligence (AI) to overhaul case selection and streamline audits. A new TIGTA report confirms the IRS is using AI models trained on current data to target compliance issues more effectively, aiming to cut back on wasted audits and reduce burdens on compliant taxpayers.
Meanwhile, the agency has seen an 11% workforce reduction, with over 11,000 employees let go and thousands more expected to exit. As IRS resources tighten, AI is expected to do the heavy lifting, even as refund delays and audit slowdowns become more common. The IRS is cutting some slack, but you’ve got to know the rules to play it smart.
Let’s break it down: If your main digs or duty post was outside the U.S. and Puerto Rico on April 15, 2025, Uncle Sam’s giving you until June 16, 2025, to file your 2024 return. That includes:
This is an automatic extension; no form-filling hustle is needed. Just file by June 16 and you're golden—on paper, at least. “This extension is standard IRS procedure,” noted in multiple IRS advisories. “But don’t mistake it for a pass on payment.”
Here’s the kicker: the extension only applies to filing, not paying. Any tax you owed for 2024 was still due by April 15, 2025. Didn’t you pay on time? That tab’s racking up interest, buddy. Even if you qualify for the late filing break, missing that April payment deadline could land you in hot water with:
Translation? It’s like ordering bottle service and forgetting to tip, in bad form.
Can’t make the June 16 deadline either? You can request an extra extension until October 15, 2025, but you gotta act:
Living abroad doesn’t mean skipping U.S. tax obligations. You may need to navigate:
And don’t forget: Americans in combat zones or affected by terrorist attacks (like those in Israel, Gaza, or the West Bank) get special extended deadlines—often well beyond June.
The IRS may have thrown you a bone with this June extension, but don’t sleep on it. If you’re abroad, remember to file by June 16, pay by April 15 (yes, retroactively), and request more time if you need it. Most importantly, stay on top of foreign asset reporting and income exclusions. Just because you're out of sight doesn’t mean you're off the IRS radar. Keep your taxes tight—no matter where in the world you are. Get the latest tax deadlines, compliance tips, and expert advice delivered to your inbox. Subscribe to MYCPE ONE Insights today.
Until next time…
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