If a US citizen gets dividends from a foreign corporation and deposits the dividends in a foreign bank and never brings the money to the US would such dividends be subject to US tax?
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Foreign income
Yes, a U.S. citizen or resident alien is subject to U.S. tax on income from any worldwide source. They may be able to claim any tax paid in the foreign country as either a tax credit (Form 1116) or tax deduction (Sch A) depending upon which is better (usually its a tax credit). -
The foreign bank account must also be disclosed on Schedule B (at the foot) and on form TDF90-22.1Comment
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]The foreign bank account must also be disclosed on Schedule B (at the foot) and on form TDF90-22.1"
This is not true if the value of the account is less than $10,000. In this case, you would check "no" on Schedule B, line 7a.
Gary
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