For those of you with American Passports, you'll have to face the fact that we are one of the few (only?) countries that requires tax filing in the USA while living/working overseas. The Treasury Dept, in all its wisdom,has continued to push this tax code as a way to stop Americans from hiding income overseas.
If your company is about to relocate you overseas, be sure to request expatriate tax services as part of your package. Maybe just ask for an additional $250 per yr toward those fees. I don't think you'll get any support should you actually owe taxes in the USA for income earned overseas. I found the big accounting firms have specialists and there are many smaller firms if you spend time to search them out.
I had friends who said, "Hell with that, I'm not filing US Taxes" and they did not for several years. They never recieved letters or notices from the Treasury Dept. They did hear this rumor that the US Treasury Dept was working closely with the US State Dept. At some future date, if you decided to update your US Passport at an Embassy, you might denied due to failure to file. I've never seen this in print but seems doubtful. We cannot figure out who enters our airports or airplanes from terrorist watch-lists. How are two seperate US agencies going to collaborate on tax filings? Can this just be urban myth?
