If you’re an American living in Japan and you’ve failed to report income from foreign financial assets and pay the related tax — and may also have missed related FBARs or international information returns — and these failures resulted from non-willful conduct — the IRS offers a path to get compliant. The Streamlined Filing Compliance…

You’ve filed your federal return, claimed the FEIE or FTC, and dealt with FBAR and the other international forms. But there’s one more layer many Americans in Japan overlook: state taxes. Moving to Japan does not automatically end your state tax obligations. Some states may continue to consider you a resident and tax your worldwide…

If you’re an American living in Japan and you sell the home you’ve been living in, you may be able to exclude up to $250,000 of capital gains from US federal income tax — or up to $500,000 if you’re married filing jointly and both spouses meet the applicable requirements. This is the Section 121…

If you’re an American who owns a controlling interest in a Japanese company — typically a Kabushiki Kaisha (KK) or a Godo Kaisha (GK) classified as a corporation for US tax purposes — you likely have a Controlled Foreign Corporation (CFC). This means certain income of the company may be taxed on your US return…

If you’re a US citizen living in Japan and considering renouncing your citizenship — or a long-term resident (green card holder) thinking about terminating your US resident status — you need to understand the exit tax before you act. Under IRC Section 877A (applicable to expatriations on or after June 17, 2008), the US imposes…

If you’re a self-employed US citizen or resident alien in Japan — a freelancer, sole proprietor (個人事業主), or owner of a small business — you may be subject to both Japanese social insurance contributions and US self-employment (SE) tax on the same earnings. Without proper planning, this creates a real double-taxation problem that the Foreign…

If you’re a US person living in Japan and you own Japanese investment trusts (投資信託), you may be holding Passive Foreign Investment Companies — PFICs. This classification can trigger complex tax rules and reporting requirements on Form 8621 that many US taxpayers discover only after years of investing in Japanese funds. This article covers US…

If you’re an American living in Japan and you receive a large gift from a Japanese relative, inherit money from a Japanese family member, or have an interest in certain Japanese financial arrangements that may be classified as foreign trusts, you may need to file Form 3520 with the IRS. Form 3520, officially “Annual Return…

If you’re an American living in Japan with investment income — dividends, capital gains, rental income, or interest — you may owe an additional 3.8% tax on top of your regular US income tax. The Net Investment Income Tax (NIIT) is a surtax that applies when your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds….

If you’re an American who owns a Japanese company — whether a Kabushiki Kaisha (KK) or a Godo Kaisha (GK) — you may have a US reporting obligation that goes far beyond your annual tax return. Form 5471, officially “Information Return of U.S. Persons With Respect to Certain Foreign Corporations,” requires certain US persons with…