Debunking the “Only US Citizens” Myth About US International Income Tax Compliance | FBAR Lawyer

Hello and welcome to Sherayzen Law Office video blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.

In this vlog from Alvarado, Mexico, I would like to continue focusing on the theme of debunking various tax myths that exist concerning the tax obligations of US tax persons who reside in Mexico; myths which are absolutely false but widely believed.

One of such myths is one I call the ‘US Citizens Only Myth’. Sometimes it has a variation of ‘US Permanent Residents and US Citizens Only Myth’. The idea behind these myths are very simple and very believable, this is why they are so wide-spread. That even though you may have qualified for under the substantial presence test to become a US tax resident, only US citizens or sometimes only US permanent residents and US citizens have to disclose their worldwide income and foreign assets on their US tax returns. The rest do not; they’re either not US citizens or they’re not US permanent residents or as I said there are variations on this myth.

This is completely false. As long as you are a tax resident, whether you are a tax residency comes from the substantial presence test, the fact that you are a permanent resident or the fact that you are a US citizen; it doesn’t really matter, what the precise source of this belief but as long as you are a US tax resident, you must disclose your worldwide income on your US tax returns and you must disclose your foreign assets to the IRS.

Thank you for watching, until the next time.