IRS Information Sharing with Foreign Countries
The IRS shares financial-account information with certain foreign countries. The IRS can find your foreign bank account. Taxpayers must report virtual currency transactions to the IRS. U.S. persons must report foreign rental income to the IRS. Tax treaties reduce issues when systems collide but allow information sharing. The IRS pursues penalties as U.S. citizens and residents must report global income. You can exclude a certain overseas income when claiming the Foreign Earned Income Exclusion. The current maximum exclusion is $108,700. The Foreign Tax Credit lets Americans claim credits for foreign taxes paid.
Filing Taxes in Another Country
The IRS shares information with foreign countries. You give the IRS permission to disclose tax information. The IRS finds foreign bank accounts. Foreign nationals pay 30% tax on U.S. income. You don’t get a green card by buying a house. Taxpayers report virtual currency to the IRS. When overseas on April 15, you have a 2-month extension. U.S. persons report foreign rental income. The IRS summons institutions and taxpayers abroad. Some countries don’t report but taxpayers must. You exclude income when claiming exclusions. The maximum exclusion is $108,700. The Credit lets Americans claim foreign tax credits.
Reporting Requirements
Once you miss requirements, be careful filing forms without a program. In countries limits restrict money transfers out, so gifts over people avoid but need reporting. Foreign persons reduce 10% withholding on property. The IRS exchanges more information.