3 Most Important Foreign Tax Filing Regulations to Follow

If you are an American taxpayer living abroad there are three important filing regulations you need to be aware of when you are filing your taxes.TaxGlobe

You Must File Your Taxes

All US taxpayers living and working abroad must file their US tax return with the IRS on the regular due date of April 15th. While the IRS does provide an automatic two-month extension for any taxpayer living and working abroad, it does not exempt you from interest. All taxes paid after April 15th will be subject to interest. Living and working abroad, while remaining a US citizen or resident alien, does not absolve you of your tax responsibility.

You Must Follow Currency Exchange Rates

When working abroad, you must file your payment of US taxes in US dollars, regardless of whether or not you receive your income in the form of foreign currency. There is no exception if you receive your income in foreign currency as a full or partial payment. All taxes must be reported in US dollars.

You Must Report Any Foreign Bank and Financial Accounts

If you possess any financial interests in a foreign country, these accounts must be reported when you file your taxes. Failure to do so will subject you to penalties and exposure to criminal liabilities concerning tax evasion and fraud.

Filing your taxes with the IRS while living abroad depends on your tax status. If you are required to file, the above are the most important tax regulations to follow.

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