Bright!Tax US Expat Tax Blog

Who Are Accidental Americans—and Why Do They Owe U.S. Taxes?

Unexpected news and complex rules—this surprised woman reflects the reality for many accidental Americans.

It’s the world’s most surprising membership: “accidental Americans.” These are people who hold U.S. citizenship—sometimes without even realizing it—and suddenly find themselves caught up in a global game of tax tag. Maybe you were born during a family layover in New York, or you inherited American citizenship from a parent, even though you’ve spent your […]

IRS Form 8621: Reporting PFICs and Foreign Investments as a U.S. Taxpayer

expat filing form 8621

If you’re investing internationally, you might not realize that some foreign assets come with extra IRS reporting requirements. Enter Form 8621—the form U.S. taxpayers must file when they own Passive Foreign Investment Companies (PFICs). PFICs can include foreign mutual funds, ETFs, and even certain foreign corporations. The IRS keeps a close watch on these investments, and failing […]