The IRS reminds "U.S. citizens and resident aliens who receive income from foreign sources must report these on their respective income tax returns." Recently, the IRS has been investigating taxpayers with foreign bank accounts in Liechtenstein and determining whether these accounts along with their earnings have been reported on their tax returns.

Taxpayers should however note that the IRS's interest "in foreign bank accounts extends beyond accounts in Liechtenstein to accounts anywhere in the world."

The IRS has warned that "if you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S." Furthermore, the IRS has stated that "this is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or the foreign equivalents."

Also worth noting that according to the IRS, "if you are a U.S. citizen or resident alien, the rules for filing income, estate and gift tax returns and for paying estimated tax are generally the same whether you are living in the U.S. or abroad."

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