U.S. Income Tax Returns

U.S. citizens and residents living in Israel are generally required, by the Internal Revenue Service and Social Security Administration, to file annual income tax returns. This is especially important since non-filing may lead to a denial of a U.S. passport renewal application and potential problems with the U.S. Social Security Administration. In addition, filing annual returns is all the more imperative in light of the U.S. - Israel income tax treaty, which became effective on January 1, 1995 and which includes a provision for the exchange of information between the U.S. and Israel with respect to each country's residents.