If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.
Many Americans living abroad qualify for special tax benefits, such as the foreign earned income exclusion and foreign tax credit, but they can only get them by filing a U.S. return.
Citizens looking to stop paying U.S. taxes must renounce their citizenship. Before being allowed to attempt to renounce your citizenship, you are required to pay a non-refundable fee of US $2,350 for administrative processing of a request to renounce their citizenship. The fee is not waivable, nor is it refundable, if your request is denied. The United States is one of the few countries in the world that tax income earned abroad and has the most expensive fee to renounce citizenship. Trying to revoke citizenship can be more frustrating than trying to cancel service with a cable company because you no longer use the service due to the subpar service provided, who in the end charges you a disconnect fee.
Donovan Niles 