U.S. citizens living abroad - U.S. tax issues

Friendly note to all Americans living abroad:

The United States is one of only 2 countries that tax its citizens on worldwide income, however, it is the only developed country that taxes its citizens solely on basis of citizenship, regardless of where the person is residing.

For the citizens that are living abroad, it brings a great compliance burden and increases the risk of double taxation. As long as one holds a U.S. citizenship, there might still be a filing obligation, regardless of permanently living abroad, having no U.S. source income or no valid American passport.

If you are a U.S. citizen, you are a subject to U.S. income tax and reporting your non-U.S. bank accounts (so called "FBAR"). And this also applies to all other nationals who were born in the USA or who have American parents but have since only lived abroad.

There are some good news for delinquent taxpayers in terms of different amnesty programs currently available. However, no one knows for how long these will be available so make sure to be fully informed so you can take necessary actions on time.

Anela