Barron's International Tax Service

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Tax Compliance

Perhaps the single most complex area of living abroad is what constitutes tax compliance.  U.S. citizens wherever they reside are required to report their world-wide income to the Internal Revenue Service.  However many countries today mandate that all foreign residents, including U.S. citizens, also report their world-wide income. For many years, expatriates reported U.S. source income to the IRS and foreign source income to the paying country. 

As income is typically taxed at increasing rates according to total taxable income, the net affect of this separate reporting was a lower overall tax bill.  Now that both the country of citizenship and the country of residence often require world-wide income reporting, the potential for increased taxation is a natural unwanted consequence.  And with the exchange of tax information becoming increasingly facilitated by tax treaties between IRS and foreign country taxation authorities in the name of Avoidance of Double Taxation, expatriates are being required to comply with tax filing requirements from both their native and resident countries. 

So an International Tax Accountant with the necessary expertise to assist American expats in filing their tax returns without their being crucified by higher taxes is essential.  At TaxBarron we have the expertise to assist you through the complexities of these changing tax laws.