Americans Abroad Left Waiting for Yearly Average Exchange Rates

Glen E. Frost, Managing Partner
Mary F. Lundstedt, Esq., Associate

Due to the government shutdown, American citizens and resident aliens living abroad should be prepared to wait even longer than those living in the U.S. to file their tax returns and receive refunds. U.S. taxpayers must report and pay taxes on their worldwide income. Those earning money abroad are required to report their income in U.S. dollars. Many U.S. taxpayers living abroad depend on the publication of the IRS’s yearly average exchange rates in order to translate their foreign currency into U.S. dollars. So far, this year’s rates have not been issued due to the backlog of work at the IRS resulting from the shutdown. Unless the rates are listed very soon, many U.S. taxpayers abroad will likely to need to request a six-month extension to file their returns.