IRS: Internal Revenue Service

The Internal Revenue Service (IRS) is the agency of the US Department of the Treasury that administers the Internal Revenue Code (IRC). It issues binding guidance - including revenue procedures, revenue rulings, and notices - through the Internal Revenue Bulletin (IRB). For example, Notice 2026-3, published in Internal Revenue Bulletin 2026-02, provides relief from additions to tax under IRC sections 6654 and 6655 for underpayment of estimated income tax, illustrating the kind of ongoing administrative guidance the IRS issues.\n\nWhat distinguishes the IRS from most other tax authorities is the scope of its jurisdiction. The US operates a citizenship-based taxation system, meaning US citizens and permanent residents (green card holders) are subject to US federal tax on their worldwide income regardless of where they live. This contrasts with the residence-based systems used by most countries, including GCC states. The IRS sets annual adjustments for items such as tax brackets and contribution limits - for example, under Rev. Proc. 2025-19, the 2026 annual deduction limitation for self-only Health Savings Account coverage under IRC section 223(b)(2)(A) is set at $4,400.\n\nThe IRS also administers payroll tax rules through publications such as Publication 15 (Circular E), the Employer's Tax Guide. For 2026, the social security tax rate on taxable wages is 6.2% each for employer and employee, as stated in the 2026 edition of Publication 15. Consult a qualified cross-border tax adviser for guidance on how these rules apply to your specific situation. This is not tax advice.

US citizens and green card holders living in the GCC - whether in the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, or Oman - remain within the IRS's reach. Gulf states do not levy personal income tax on employment income, but that does not extinguish a US person's obligation to file a US federal return and potentially pay US tax. The IRS requires reporting of foreign bank accounts and foreign financial assets through separate mechanisms, and failure to comply carries significant penalties. If you are a US person resident in the GCC, you should confirm your filing obligations with a qualified cross-border tax adviser before each filing deadline.\n\nDouble-tax treaties and foreign tax credit provisions within the IRC may reduce the risk of being taxed twice on the same income, but these provisions are complex and fact-specific. The IRS publishes authoritative guidance at irs.gov. Always consult a tax adviser familiar with both US tax law and the tax framework of your GCC country of residence before making any filing decisions. This is not tax advice.