Whether or not you owe taxes depends on your particular circumstances. What is clear is that you do have to report the income on your U.S. federal income tax return. As a basic rule, U.S. citizens are subject to U.S. tax and reporting on worldwide income. You must annually report all of your income to the IRS, whether the income is from U.S. sources or foreign sources, and whether or not the income is taxed or reported in the country where the bank account is located.Additional reporting requirements may also be applicable depending on the value of the account. Two particular forms that you should be aware of are the FBAR and Form 8938, both of which require foreign bank account reporting in certain circumstances. The IRS has a helpful webpage comparing the two forms. Failure to file these forms, if applicable, can result in severe penalties.That being said, the good news is that both U.S. domestic tax law and U.S. tax treaties contain that are designed to prevent u201cdouble taxation,u201d or taxation on the same income in both countries. Domestic law provisions include the foreign tax credit, which may be applicable if you are paying foreign taxes on the income earned from account. These provisions, in many cases, can reduce or even eliminate the U.S. federal income tax that would otherwise be due by you. Keep in mind, however, that even if no U.S. tax is owed, a U.S. tax return still generally must be filed in order to benefit from these provisions, and the failure to do so can result in severe penalties.