1. Tax obligations for retired US citizens that expect to remain in a foreign country.

Your US tax obligation is the same as that of a retired person living in the US.

2. I have lived abroad for a number of years and realized only recently that there is a requirement to file US tax returns.

File the late returns as soon as possible, stating your reason for filing late.

3. Filing for an extension.

You can get an automatic 6 month extension of time to file (but not of time to pay) by filing Form 4868. You must file this by the due date for filing your return.

Please note if you pay the tax due after April 15 interest will be charged from April 15 ^th until the date the tax is paid.

To obtain an extension in order to meet tests for foreign presence file Form 2350. You must file this by the due date for filing your return.

This form should be mailed to:

Internal Revenue Service Center

Austin, TX 73301-0215

USA

4. US Withholding Tax

Sometimes US tax is withheld at a rate of 30% on US-sourced interest and dividends. This situation can be corrected by filing Form W-9 (indicating that you are a US citizen) with the withholding agents who are paying you the interest and dividends. This form is the withholding agent's authority to stop withholding the tax.

5. Contributions to Foreign Charitable Organizations

Generally, you cannot deduct direct contributions to foreign charitable organizations. You can deduct contributions to US charitable organizations that transfer funds to a foreign charity.

You can deduct contributions to certain Canadian, Israeli, and Mexican charitable organisations, under certain circumstances.

6. Foreign Bank Accounts

Each U.S. person who has a financial interest in any foreign financial accounts, including bank, securities, or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report the account each year by filing Form TD F 90-22.1 with the Department of the Treasury on or before June 30, of the succeeding year.

7. Foreign Mutual Funds

Foreign mutual funds or investment companies typically do not produce the same reports (e.g. 1099 form) that US-based mutual funds do. Therefore, U.S. tax laws are designed to deter U.S. persons from investing in mutual funds outside the U.S. by imposing high tax rates and cumbersome reporting requirements. These foreign funds are referred to as passive foreign investment companies or PFICs. In general, a U.S. person may be better off to invest directly in the stock of foreign corporations that are not PFICs or to invest in a U.S. mutual fund that invests in foreign stocks or foreign mutual funds.

8. Foreign Corporations

An information return is required to be filed with your annual tax return if you are a shareholder, director or officer in certain foreign corporations. Generally, if you are a U.S. person and you have a shareholding of 10% or more of a foreign corporation, you are required to report the details, even if there is no taxable income to report. Depending on the category of taxpayer you are considered, and there are five to choose from, there are a number of schedules to complete, in addition to the main form (5471). Penalties can de severe for failure to file.