FIRSTLY, both U.S. citizens and green card holders, or lawful permanent residents, are generally obligated to file U.S. income tax returns and report their global income to the IRS for tax purposes.
SECONDLY, this global income encompasses earnings from both the United States and any foreign countries. The penalties for failing to file or report foreign income and assets can be quite severe.
LASTLY, it is beneficial to file taxes even when no filing requirement exists, simply to maintain current financial records. From personal experience, I have seen instances where taxpayers had to file up to three years of tax returns despite having no initial filing requirement due to circumstances that necessitated proof of income. Having tax returns on file significantly simplifies this process.
Kind Regards,
Franklin
TurboTax Expert
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