On 11/10/2014 3:07 AM, Tom P wrote:

On 09.11.2014 23:26, ALittleRockInTheCosmos wrote:

As a US ex-pat, one only pays income taxes to both countries if one's
income exceeds a certain threshold. This year, that amount for the full
year is $99,200. I doubt Erilar's income exceeds that threshold.

The biggest problem for American ex-pats these days is that the
American tax authority - the IRS, Internal Revenue Service - has put
the onus on banks where Americans have accounts to provide complete
information on those accounts, no matter where the banks are.
European banks have responded by either outright refusing to open
accounts to American ex-pats, or severely curtailing the services on
offer to those ex-pats.

If I understand correctly, the IRS doesn't understand the concept of tax
residence?

The IRS sort of does. If a USA citizen is an ex-pat and files (submits
tax documents, forms, and payment if necessary) from non-USA address,
then the overseas status is documented, and the ex-pat will receive
the exemption.

Otherwise, though, the USA ex-pat is responsible for stating _all_
income subject to taxation worldwide, no matter where the residence.

The only escape from this is to become the citizen of another country
and renounce USA citizenship. It's happened.