Do Americans Living Abroad Have to Pay U.S. Taxes?
Q: I am a U.S. citizen who moved to the U.K. several (or many) years ago and thought I did not have to file U.S. tax returns any longer. Now I have learned that information was incorrect. What do I do?
A: American citizens living outside of the U.S. are subject to the same filing requirements that apply to American citizens living in the U.S. The U.S. tax filing requirement is based on worldwide income from all sources irrespective of residence.
Filing a past due return may not be as difficult as you think. Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return.
For more information, please see p.10 (or click on Returns for Prior Years in the Topical Index) of the Tax Assistance Information Booklet for Tax Year 2010 [PDF, 650kb] put together by the U.S. Embassy London’s IRS Office.