The Silver Lining for Non-Compliance Reporting of Foreign IncomeJune 01, 2015
Is Foreign Income Taxable in the U.S.?
Are U.S. citizens taxed only on their domestic income or are they taxed on their worldwide income? Many U.S. taxpayers are shocked to find out that they are taxed on their worldwide income including wages earned overseas. It is therefore not unusual to find an overseas U.S. taxpayer who has not filed U.S. tax returns for multiple years based on the belief that their foreign income is not taxable in the U.S.
U.S. taxpayers who are overseas and have been out of filing compliance for many years can be subject to many IRS penalties which could result in hefty fines.
Read our article “Is Foreign Income Taxable in the U.S.?” for more information on voluntary disclosure and compliance for U.S. taxpayers, streamline filing and OVDP.