Most people think that they have a free pass for not filing their taxes if they work abroad. They also believe that their taxes do not have to be paid, either. Unfortunately, this isn't the case. The IRS expects everyone to file their tax returns to avoid severe IRS issues, regardless if you work in a foreign nation or in the United States.



Citizens of the United States of America, as well as residents of the United States, can fill out two types of tax forms when residing in a foreign nation. These are the the IRS Form 2555-EZ and Form 2555 (Foreign Earned Income).

Similar general rules apply. Your tax return should be filed at the 15th of April each year, and an automatic extension is offered if you require more time. In fact, you will be offered an automatic two-month extension, offering you more time to pay the correct tax debts due and file the appropriate forms. You have to attach an official statement to confirm that you qualify for this two-month extension to be able to utilize it.

The loss of tax information is a problem that usually confronts American citizens moving abroad. It's likely that they did not receive their W-2 information before they moved. It's your duty to obtain this information, whether it's getting someone to track down your mail for you, or requesting another copy from your employer through email. This has to be done in a timely manner to prevent an IRS issue.

There are several options to choose from when filing your taxes if your spouse isn't an American citizen. You can elect to file as Married Filing Separately wherein you only must report your own income for the year. If you have children, you can file as Head of Household. You can also file as Married Filing Jointly by declaring your spouse as a resident alien.

It's advised to consult a tax professional when filing taxes from abroad. With the various factors involved, this is the best way to prevent IRS issues.