What is the USA liability for inheritance tax for a person who is a U S Citizen, but does not pay US tax?
US Citizens are subject to US tax laws regardless of where they live. The IRS has offices in many foreign countries and will take enforcement action just as if you were at home in the States. You MAY be eligible to claim an exclusion of foreign earned income (Form 2555) if you file by the filing deadline, including any extensions. Alternatively you can claim a credit of foreign income taxes paid. You should figure your taxes both ways and file whichever way is most beneficial to your. It is better to go ahead and file and prove that you have no income tax due rather than to just say 'I don't owe anything because I'm under the limit" and have them come after you.