The Long Arm of The IRS Reaches To Americans Living & Working Abroad

Above, even Americans working in Japan
and paid by yen are subject to U.S. taxes.

Ever wondered if an American living and working in another country still has to pay Uncle Sam?  Well, an article in The Japan Times says they do.

They wrote:

After 20 years of living in Switzerland, Scott Schmith renounced his U.S. citizenship, to escape the obligation to report his income and assets to the U.S. government despite living overseas. 

Schmith is just one of a rising number of Americans giving up their citizenship to avoid the increasing efforts of U.S. authorities to collect taxes on its citizens who keep money offshore, even those who live and work outside the country. 

Americans discovered to be not reporting their offshore accounts, and not paying taxes on them where due, face stiff penalties. 

The U.S. is the only major country that requires its citizens who are residents abroad to report their income to their country’s tax authority, the Internal Revenue Service.

So if you thought that living and working abroad will put you out of reach of the IRS, you're sadly mistaken.

To read more, go here.