For Australians with U.S. tax obligations—whether you’re an expat, investor, or dual citizen—tax time can feel like a juggling act. The U.S. Internal Revenue Service (IRS) expects filings from anyone with a U.S. tax liability, and deadlines don’t always line up with Australia’s July 31 lodgement. If you need more time to file your U.S. return, IRS Form 4868 is your go-to move in 2025.
What Is IRS Form 4868 and Who Needs It?
IRS Form 4868 is the official application for an automatic extension of time to file your U.S. individual income tax return. While it doesn’t extend the time to pay any tax owed, it gives you until October 15 (instead of the usual April 15) to submit your paperwork. This is especially relevant for Australians who:
- Hold U.S. citizenship or dual citizenship
- Own U.S. investment property or shares
- Are employed by a U.S. company or receive U.S.-sourced income
- Are green card holders residing in Australia
With the IRS’s global reach, missing the filing deadline—even if you live Down Under—can lead to penalties and interest. In 2025, the IRS continues to enforce its worldwide tax reporting rules, and with enhanced data sharing between the ATO and IRS, more Australians are being flagged for compliance.
Filing IRS Form 4868 from Australia: What’s New in 2025?
Filing Form 4868 is straightforward, but 2025 brings a few technical updates and policy reminders:
- Online Filing Boosted: The IRS has expanded its e-filing platform, making it easier for non-U.S. residents to file extensions electronically. You can submit Form 4868 through IRS Free File, commercial tax software, or via a tax agent.
- Digital Identity Verification: The IRS now requires two-factor authentication for overseas filers using online services, aiming to curb identity fraud and protect sensitive data.
- Australian Dollar Conversions: You’ll need to estimate your U.S. tax liability in USD, using IRS-approved exchange rates. In 2025, the AUD/USD rate remains volatile, so check the latest rates before filing.
Example: Anna, an Australian resident with a U.S. rental property, expects to owe $2,000 USD in tax but can’t finalise her figures by April 15. By submitting Form 4868, she secures an extra six months to file, but she still pays her estimated tax by April 15 to avoid penalties.
Common Pitfalls and Pro Tips for Australians Filing U.S. Extensions
Getting an extension is relatively simple, but there are traps for the unwary:
- Extension to File, Not to Pay: The IRS expects payment of your estimated tax by the original deadline, even if you’re still pulling together your paperwork. Late payments attract interest and penalties.
- State Tax Returns: Many U.S. states have their own filing deadlines and extension forms. If you have income from states like California or New York, check their requirements separately.
- Superannuation and Foreign Accounts: U.S. citizens in Australia must still report foreign accounts (FBAR/FinCEN 114) and certain superannuation funds. Form 4868 does not extend these deadlines.
- Paper vs. E-File: While paper filing is still allowed, the IRS strongly encourages e-filing, especially for overseas filers, to reduce delays and errors.
For 2025, the IRS has also flagged a crackdown on late and incomplete international filings. If you’re using an Australian tax agent, confirm they’re familiar with U.S. expat tax rules—these forms are not part of standard ATO practice.
Next Steps for Australians Navigating U.S. Tax Extensions
With global tax enforcement on the rise, staying ahead of deadlines is more important than ever. If you think you’ll need extra time to lodge your U.S. tax return in 2025, plan to file Form 4868 well before April 15. Gather your U.S. income data, estimate your liability, and set reminders for any related state or information returns.
