com 2 3 5 0 Application for Extension of Time OMB No. 1545-0070

To File U.S. Income Tax Return 19 86
Department of the Treasury i i i ‘
Internal Revenue Service (For U.S. Citizens and Resident Aliens Abroad Who Expect to Qualify for Special Tax Treatment) Attachment 58
Please type or Name Your social security number
print. : :
File the original | Present home address (number and street, or rural route). (If you have a P.O. Box, see the instructions.) ‘Spouse's social security number
and one copy by °
the due date for :

filing your | City or town, state, and ZIP code or country
return.

If you expect to file a gift tax return (Form 709 or Form 709-A) for 1986, generally due by April 15, 1987, check this box. . . . ®T]
1

to file my income tax return
because my tax

home is in a foreign country and | expect to qualify for special tax treatment by meeting the test | have checked below:

a Bona fide residence test (see instructions) . ee

b Physical presence test (seeinstructionsy © 2 2... ee
2 Were you previously granted an extension of time to file for this tax year? . . sone ee ee ww  . . DO Yes No
3 Will you need additional time to allocate movingexpenses? . . . . 2 2... . Yes No

4a Date you first arrived in foreign country
b Date qualifying period begins
c Your foreign home address __
d Date you expect to return to the United States

Signature and Verification

Under penalties of perjury, | declare that | have examined this form, including accompanying schedules and statements, and to the
best of my knowledge and belief, it is true, correct, and complete; and, if prepared by someone other than the taxpayer, that | am
authorized to prepare this form.

Signature of taxpayer P Date >

Signature of spouse > Date >

Signature of preparer
other than taxpayer P Date >

IRS will show below whether or not your application is approved and will return the copy.

Notice to Applicant—To Be Completed by IRS
We HAVE approved your application. (Please attach this form to your return.)
( We HAVE NOT approved your application. (Please attach this form to your return.)

However, after considering the above information, we have granted a 45-day grace period from the date shown below or due date of
your return, whichever is later. This grace period is considered to be a valid extension of time for elections otherwise required to be
made on returns filed on time.

(We HAVE NOT approved your application.
After considering the above information, we cannot grant your request for an extension of time to file. (We are not granting the 45-day
grace period.)

We cannot consider your application because it was filed after the due date of your return.
Other

oo

Director

By;

Date

If the copy of this form is to be returned to you at an address other than that shown above, or to an agent acting for you, please enter the
name of the agent and/or the address where the copy should be sent.

Name

Please
Type | Number and street or P.O. Box number (if mail is not delivered to street address)

or
Print

City or town, state, and ZIP code

For Paperwork Reduction Act Notice, see back of form. Form 2350 (1986)


Form 2350 (1986)

Page 2

Instructions

Changes You Should Note

The Tax Reform Act of 1986 contains
several provisions that may be of special
interest to U.S. citizens and U.S. resident
aliens abroad. Among the new provisions
are the following:
@ The maximum foreign earned income
exclusion is reduced to $70,000 per year,
effective for tax years beginning after 1986.
@ Generally, certain benefits are denied to
individuals violating Federal travel
restrictions, effective for tax years
beginning after 1986
Beginning in 1987 passport and green
card applicants may have to complete an
IRS information return.
@ Pension payments will be subject to
income tax withholding if delivered outside
the U.S., effective for payments made after
1986.

For more information see Publication
54, Tax Guide for U.S. Citizens and
Resident Aliens Abroad

Paperwork Reduction Act Notice

We ask for this information to carry out the
Internal Revenue laws of the United States.
We need it to ensure that taxpayers are
complying with these laws and to allow us to
figure and collect the right amount of tax.
You are required to give us this information.

Purpose of Form

Use Form 2350 to request an extension of
time to file your tax return if you need more
time to meet either the bona fide residence
test or the physical presence test that you
must meet to qualify for the foreign earned
income exclusion and the housing exclusion
or deduction.

However, if you file your return after the
regular due date, you may not choose to
have the IRS figure your income tax.

Note: U.S. citizens and U.S. resident aliens
who are living or traveling outside the
United States and Puerto Rico on the due
date for filing their return are automatically
granted an extension of 2 months to file
their return and pay any tax due (to June
15, 1987, for a 1986 calendar year return).
/f you do not expect to meet the bona fide
residence or physical presence test, file
Form 4868, Application for Automatic
Extension of Time To File U.S. Individual
Income Tax Return, to request an extension
of time to file beyond the automatic
2-month extension.

Who Should File

You should file Form 2350 if:

@ You area US. citizen or U.S. resident
alien;

e You expect to qualify for the foreign
earned income exclusion and/or the
housing exclusion or deduction by meeting
either the bona fide residence test or the
physical presence test, but not until after
the end of the automatic 2-month extension
period; and

e Your tax home is in a foreign country, or
countries, throughout your period of bona
fide residence or physical presence,
whichever applies.

Definitions

Bona fide residence test.—To meet this
test, you must be a U.S. citizen and bona
fide resident of a foreign country or
countries for an uninterrupted period that
includes an entire tax year.

Physical presence test.—To meet this
test, you must be a U.S. citizen or a U.S.
resident alien who is physically present ina
foreign country or countries for at least 330
full days during any period of 12 months in
arow.

Tax home.—Generally, your tax home is
your regular or main place of business or
post of duty, regardless of where you
maintain your family home. If you do not
have a regular or main place of business
because of the nature of your work, then
your tax home is the place where you
regularly live.

Foreign country.—A foreign country is a
country other than the United States or any
of its possessions.

Additional Information

Publication 54, Tax Guide for U.S. Citizens
and Resident Aliens Abroad, provides a
detailed discussion of the bona fide
residence test, the physical presence test,
the foreign earned income exclusion, and
the housing exclusion and deduction. You
may get the publication from most U.S.
embassies and consulates, or by writing to:
Forms Distribution Center, P.O. Box 25866,
Richmond, VA 23260.

When To File

File Form 2350 by the due date (including
the automatic 2-month extension) for filing
your Form 1040.

File early enough so that IRS will have
time to act on your application before your
return’s regular or extended due date.

How To File

File the original and one copy of Form 2350
with either:

@ The Internal Revenue Service Center,
Philadelphia, PA 19255; or

@ The local Internal Revenue Service
representative or other Internal Revenue
Service employee.

How To Claim Credit for Payment Made
With This Form.—If you are making a
payment, include the amount of the
payment on Form 1040, line 59. Also write
“Form 2350" and the amount paid in the
space to the left of line 59.

Name, address, and social security
numbers.—At the top of this form, fill in
the spaces for your name, address, social
security number, and your spouse’s social
security number if you are filing a joint
return. Note: If the post office does not
deliver mail to your street address and you
have a P.O. Box, enter your P.O. Box
number on the line for your present home
address instead of your street address.
Signature

(a) Taxpayers. —Generally, both spouses
must sign this form for the extension to be
valid if a joint return is to be filed. But if one

spouse cannot sign because of illness,
absence, or other good cause, the other

spouse may sign for both, provided a proper
explanation is attached explaining why that
spouse cannot sign this form.

(b) Other than taxpayer.—Persons who
may sign for the taxpayer include attorneys
or certified public accountants qualified to
practice before the IRS, enrolled agents, or
any person holding a power of attorney. If
the taxpayer cannot sign because of illness,
absence, or other good cause, a person in
close personal or business relationship to
the taxpayer may sign, provided a proper
explanation is attached as to why the
taxpayer cannot sign this form. It is not
necessary that such person hold a power of
attorney.

Period of Extension

If you are granted an extension, it will
generally be to a date 30 days after the date
on which you expect to meet either the bona
fide residence test or the physical presence
test. However, if you must allocate moving
expenses (explained in Publication 54), you
may be granted an extension to 90 days.
after the end of the year following the year
you moved to the foreign country.

Note: Any extension of time granted for
filing a 1986 calendar year Form 1040 also
extends the time for filing a gift tax return
(Form 709 or Form 709-A) for 1986 that is
generally due by April 15, 1987. If you
expect to file a gift tax return for 1986,
check the box on the front of this form.

Penalties and Interest

You may be charged one or both of the
following penalties.

Late payment penalty.—Form 2350 does
not extend the time to pay income, gift, or
generation-skipping transfer taxes.
Generally a penalty of 1/2 of 1% of any tax
(other than estimated tax) not paid by the
due date (including the automatic 2-month
extension) is charged for each month, or
part of a month, that the tax remains
unpaid. The penalty will not be charged if
you can show reasonable cause for not
paying on time. The penalty is limited

to 25%.

Late filing penalty.—A penalty is charged
if your return is filed after the due date
(including extensions to file), unless you can
show reasonable cause for filing late. The
penalty is 5% of the tax not paid by the
regular due date (even if an extension of
time to pay has been granted) for each
month, or part of a month, that your return
is late. The penalty is limited to 25%. If your
return is more than 60 days late, the
penalty will not be less than $100 or the
balance of tax due on your return,
whichever is smaller.

Caution: /f an extension to file is granted
and the IRS later determines that the
statements made on this form are false and
misleading, the extension is null and void.
You will be subject to the late filing penalty.
Interest.—Interest is charged on the tax not
paid by the regular due date of your return
until the tax is paid. It will be charged even if
you have been granted an extension to file or
Pay, or if you can show reasonable cause for
not paying the tax on time.