Important IRS E-File Deadlines & What Foreign Sellers Need to Know.
As the year comes to a close, the IRS is preparing to pause electronic filing (e-file) for 2024 tax returns. This annual shutdown impacts filing timelines, refund processing, and planning—especially for foreign sellers with U.S. tax obligations. Below is what you need to know to stay ahead and avoid unnecessary delays.
Final Day to E-File 2024 Tax Returns
The last day the IRS will accept e-filed 2024 tax returns is December 26. After this date, electronic filing will be unavailable until the IRS officially opens the 2025 tax season. If you are ready to file, submitting before this deadline is strongly recommended. E-filing ensures faster processing, fewer errors, and quicker access to refunds.
2025 Tax Season Opening Delayed
The estimated opening date for the 2025 tax season is February 16, which is the latest start date in IRS history. This delay is most likely due to the recent government shutdown. Because of the shortened filing window, taxpayers—particularly foreign sellers—should begin preparing documentation now to avoid bottlenecks once filing reopens.
Foreign Sellers: Prepare Capital Improvement Records Early
Foreign sellers with significant capital gains should begin gathering a detailed list of capital improvements made to their U.S. property. Proper documentation can substantially reduce taxable gain and ensure the return is prepared accurately once filing resumes. Having these records ready in advance will help prevent delays during an already compressed tax season.
Refund Timing & Banking Considerations
For returns that are e-filed, the IRS can process refunds in as little as 21 days. Foreign sellers who have a U.S. bank account can receive their refund via direct deposit, often significantly faster than waiting for a mailed check. If a U.S. bank account is needed, assistance may be available to help open one specifically for receiving an IRS refund. Please note that certain sanctioned countries are restricted from opening U.S. accounts.
New IRS Identity Verification Audits
Taxpayers should also be aware of a new IRS identity audit process. If selected, the IRS will send an identity verification letter to the taxpayer’s foreign address, and the response window is limited. To help avoid delays in correspondence, foreign taxpayers may want to consider using a U.S. mailing address on their tax return, which can significantly speed up communication with the IRS.
Final Thoughts
With e-file closing soon and the next tax season opening later than usual, proactive planning is more important than ever. Filing before December 26, preparing capital improvement documentation, and ensuring proper banking and mailing arrangements can make a significant difference in processing time and refund speed. If you have questions about filing timelines, refunds, or setting up a U.S. bank account, now is the time to get prepared—before deadlines and delays take over.