U.S. TAX FILING & REPORTING
Do U.S. tax rules apply to you?
U.S. filing and reporting obligations can arise from citizenship, immigration status, physical presence, U.S.-source income, property ownership or foreign financial interests.
Living outside the United States does not necessarily end a U.S. filing obligation, and a filing requirement does not necessarily mean that U.S. tax will ultimately be due.
Who may have U.S. filing obligations
U.S. Citizens Living Abroad
U.S. citizens generally remain subject to U.S. tax filing rules on worldwide income even while living abroad. This can also affect dual citizens and certain individuals who acquired U.S. citizenship at birth. Foreign tax credits, the Foreign Earned Income Exclusion and other provisions may reduce or eliminate U.S. income tax, while filing or reporting obligations may still remain.
Green Card Holders & Other U.S. Tax Residents
Green card holders are generally treated as U.S. tax residents while that status continues. Other individuals may become U.S. tax residents under the substantial presence rules based on time spent in the United States. U.S. tax residents are generally subject to U.S. taxation on worldwide income.
Nonresidents With U.S. Income
Individuals who are not U.S. citizens or U.S. tax residents may still have U.S. filing obligations when they receive certain U.S.-source income. Examples may include business income, employment income, rental income, partnership income or other income for which withholding does not fully satisfy the U.S. tax obligation.
U.S. Real Estate & Investments
Foreign individuals who own or sell U.S. real estate, receive U.S. rental income or hold certain U.S. investments may have U.S. tax, filing or withholding requirements. The applicable treatment depends on the nature of the income, ownership structure and individual circumstances.
Foreign Accounts, Assets & Entities
U.S. citizens and other U.S. persons may have separate reporting obligations for financial accounts, investments, corporations, partnerships, trusts or other assets located outside the United States. Depending on the facts, reporting may include FBAR, Form 8938 and other international information returns. Reporting obligations may exist even when little or no additional U.S. income tax is due.
If something was missed or your circumstances changed
Behind on U.S. Filings
If required U.S. tax returns, FBARs or international information filings were not submitted in prior years, the appropriate method for becoming compliant depends on the circumstances. For qualifying taxpayers whose prior failures were non-willful, the Streamlined Filing Compliance Procedures may provide a structured method for correcting prior-year compliance.
Prior Return Review & Second Opinion
International tax filings can involve reporting requirements that are easy to overlook. Previously filed or recently prepared returns may be reviewed for omitted international forms, inconsistent treatment, foreign income, foreign accounts, foreign entities or other reporting matters.
Expatriation & Ending U.S. Tax Status
Relinquishing U.S. citizenship or ending certain long-term permanent resident status can create separate U.S. tax and reporting requirements. Planning may include review of prior-year compliance, Form 8854, covered-expatriate status and potential exit-tax consequences. These issues should ideally be considered before the expatriation process is completed.
Not sure where you fit?
U.S. tax status can depend on several factors, and similar circumstances can produce different filing requirements. A brief review of citizenship or immigration status, residence, income sources, foreign financial interests and prior filing history can help identify the appropriate compliance path.
This information is general in nature and is not intended as tax or legal advice. Filing and reporting requirements depend on individual facts, applicable thresholds and other circumstances.