The U.S. Internal Revenue Service requires U.S. citizens and green card holders to report their worldwide income annually.  Fortunately, tax treaties with dozens of countries can protect you from double taxation to minimize U.S. tax on your foreign-sourced income.

For example, if you are single living abroad for the year and your foreign employment income is less than $91,400 in 2009, you can avoid U.S. tax on that income.  But, you are still required to file a tax return to report your worldwide income. 

You are also required to report foreign financial accounts under your fiduciary control.  Failure to meet this filing requirement is subject to stiffer penalties since 2005:  a minimum $10,000 fine to $100,000 per account.  Not a small price to pay!

In addition to reducing your worries of a criminal penalty, other good reasons to file your tax return annually are to support your financial credit history and help avoid a costly IRS audit in the future.  Most Americans living abroad eventually return to pursue the American dream and personal wealth tied up in a home is difficult to hide from the IRS.

At US-TaxCPA.com our mission is to take the pain out of U.S. tax compliance so you can feel good about yourself and your country.  We offer convenient service at a globally competitive price.  Use a qualified CPA tax professional for reliable service and your peace of mind.  

Have a tax question and enjoy doing the research yourself?  Go online to thousands of pages of U.S. Tax Code Online.