American tax laws make it clear that it doesn’t matter if you have dual citizenship. As long as you hold American citizenship or you are a green card holder, then you are liable to pay U.S. taxes. The United States is one of two countries in the world, where a tax on foreign income is based on citizenship and not a residence. Therefore, when you are considered a U.S. person for tax purposes – which is 100% correct if you have American citizenship – you are required to report and file a tax return to the IRS.