Even with Washington at a standstill, the IRS clock keeps ticking

For most taxpayers — including Americans living in Australia, New Zealand, and beyond — October 15 remains the final day to file your extended 2024 U.S. tax return.

The Deadline Isn’t Moving

If you filed Form 4868 earlier this year, you received an automatic six-month extension to submit your return. But remember — that extension was only to file, not to pay.

Any 2024 balance due was still required by April 15, and late-payment penalties (0.5 % per month) continue to accrue.

Even during the government shutdown, IRS e-filing systems remain live, so you can still submit your return online and stay compliant.

For Americans Abroad: Extensions Through October — and Possibly December 15

Americans living outside the United States automatically receive a two-month extension to June 15 each year. Many expats then file Form 4868 to extend their deadline further to October 15.

However, in certain cases, you can request an additional discretionary extension to December 15 under Treas. Reg. § 1.6081-5(a)(5).

This extension is not automatic — it must be formally requested in writing (usually by letter to the IRS) explaining why you need more time. The IRS has discretion to approve or deny the request, so reasons should be clear and reasonable (for example, delays obtaining foreign income statements or local tax documentation).

Even with the government shutdown, these requests can still be mailed or electronically submitted — but processing delays are expected.

For many Americans abroad juggling foreign tax filings, this discretionary extension can be a valuable tool to stay compliant without rushing.

IRS Staffing, Furloughs, and Delays

Roughly half the IRS workforce — about 34 000 employees — has been furloughed. That means longer wait times and limited customer service for anyone needing specialized assistance or responding to IRS notices.

However, electronic systems and secure transmission channels for tax professionals like US Tax Pros remain fully operational.

What Does “Furloughed” Mean?

When the U.S. government “shuts down,” it doesn’t completely stop operating — but it goes into low-power mode.

Many agencies, including the IRS, must suspend “non-essential” functions because Congress hasn’t approved new funding.

That’s where furloughs come in. A furlough is a temporary, unpaid leave of absence for federal employees. During a shutdown, these workers are legally required to stop working and don’t receive paychecks while the shutdown continues.

However:

• Furloughed employees typically receive back pay once Congress passes a new funding bill — but that’s not guaranteed until it’s signed into law.
• Essential employees (such as those maintaining IRS e-file and cybersecurity systems) keep working, though their pay may be delayed.

So when you hear that “half the IRS has been furloughed,” it means tens of thousands of staff are temporarily sidelined — causing delays in phone support, paper-return processing, and correspondence responses.

But the good news: core IRS systems remain active, and electronic filing through authorized providers like US Tax Pros continues uninterrupted.

Could This Become the Longest Shutdown in U.S. History?

Analysts are warning that this could become the longest government shutdown in modern U.S. history if Congress doesn’t reach a funding agreement soon.

Each additional day compounds the administrative backlog — especially for tax transcripts, refund reviews, and notice responses — leaving taxpayers in limbo.

The IRS has contingency plans to keep critical systems online, but with so many employees furloughed, delays in paper processing and approvals are inevitable.

For Americans abroad, that means more uncertainty — and a stronger reason to make sure your return is filed cleanly and correctly the first time.

What This Means for Americans Abroad

If you’re overseas, the October 15 deadline applies just the same. Certain taxpayers affected by natural disasters may have additional time, but for most Americans abroad, this is the final date before late-filing penalties (5 % per month) begin.

Filing from abroad can already be complex — juggling the Foreign Earned Income Exclusion (Form 2555), Foreign Tax Credit (Form 1116), and FATCA disclosures (Form 8938) — and the shutdown only makes getting help harder.

That’s where we come in.

How US Tax Pros Can Help

We specialize in keeping Americans abroad compliant, even when the IRS is closed for business.

Our team can:

• E-file your return securely before the deadline
• Review your documents to catch mismatches that trigger IRS delays
• Assist with discretionary extension requests through December 15 under § 1.6081-5(a)(5)
• Handle payment arrangements or penalty relief requests if you owe
• Monitor IRS updates during and after the shutdown

If you haven’t filed yet, it’s not too late — but it’s definitely time to move.

Reach out now and let US Tax Pros make sure your return is submitted correctly and on time.

Book a consultation: ustaxpros.com/schedule
Email: info@ustaxpros.com
Proudly helping Americans abroad in New Zealand, Australia & beyond.

Disclaimer

This article is provided for general informational and educational purposes only and does not constitute legal, tax, or accounting advice.

Every taxpayer’s situation is unique; readers should not act on this information without seeking professional advice based on their particular circumstances.

Pursuant to U.S. Treasury Department Circular 230, any U.S. tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

For personalized guidance, please consult your qualified tax professional or contact US Tax Pros for tailored advice.